Question

Bridgeport Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Bridgeport Warehouse uses a periodic inventory system the earnings approach. At the end of June its inventory consisted of 41 suitcases purchased at $36 each. During the month of July, the following merchandising transactions occurred:

July 1		Purchased 50 suitcases on account for $36 each from Trunk Manufacturers, terms n/30, FOB destination.
2		The correct company paid $155 freight on the July 1 purchase.
4		Received $180 credit for five suitcases returned to Trunk Manufacturers because they were damaged.
10		Sold 45 suitcases that cost $36 each to Satchel World for $70 each on account.
12		Issued a $350 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory.
15		Purchased 60 additional suitcases from Trunk Manufacturers for $33.50 each, terms n/30, FOB shipping point.
18		Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers.
21		Sold 54 suitcases that cost $36 each to Fly-By-Night for $70 each on account.
23		Gave Fly-By-Night a $140 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers.
30		Paid Trunk Manufacturers for the July 1 purchase.
31		Received balance owing from Satchel World. Record the July transactions for Bridgeport Warehouse. Assume that Bridgeport uses the earnings approach. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Answer 1

Date	Account Titles and Explanation	Debit	Credit
1-Jul	Purchases	1800
	Accounts Payable		1800
2-Jul	Freight in	155
	Cash		155
4-Jul	Accounts Payable	180
	Purchases Return		180
10-Jul	Accounts Receivables	3150
	Sales Revenue		3150
12-Jul	Sales Return and Allowances	350
	Accounts Receivables		350
15-Jul	Purchases	2010
	Accounts Payable		2010
18-Jul	Freight in	150
	Cash		150
21-Jul	Accounts Receivables	3780
	Sales Revenue		3780
23-Jul	Sales Return and Allowances	140
	Accounts Receivables		140
30-Jul	Accounts Payable	1620
	Cash		1620
31-Jul	Cash	2800
	Accounts Recivables		2800
31-Jul	Inventory (Ending)	1794
	Cost of Good Sold	3312
	Purchases		3630
	Inventory (Beginning)		1476