Question

Ready-Set-Go, Ltd. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Ready-Set-Go's inventory consisted of suitcases costing £1,200. During the month of July, the following merchandising transactions occurred.
July 1 Purchased suitcases on account for £1,620 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of £100 for freight on this date.
3 Sold suitcases on account to Satchel World for £2,200. The cost of suitcases sold was £1,400.
9 Paid Trunk Manufacturers in full.
12 Received payment in full from Satchel World.
17 Sold suitcases on account to Lady GoGo for £1,400. The cost of the suitcases sold was £1,030.
18 Purchased suitcases on account for £1,900 from Holiday Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of £125 for freight on this date.
20 Received £300 credit (including freight) for suitcases returned to Holiday Manufacturers.
21 Received payment in full from Lady GoGo.
22 Sold suitcases on account to Vagabond for £2,400. The cost of suitcases sold was £1,350.
30 Paid Holiday Manufacturers in full.
31 Granted Vagabond £200 credit for suitcases returned costing £120.
Ready-Set-Go's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.
Instructions
Journalize the transactions for the month of July for Ready-Set-Go, Ltd. using a perpetual inventory system.

Answer 1

Journal Entries in the Books of Ready -Set-Go Ltd
Date	Particulars		Debit	Credit
01-Jul	No.120 Inventory A/C	Dr	1620
	To No.201 Accounts Payable( Trunk Manufacturers A/C )			1620
01-Jul	Freight A/C	Dr	100
	To No.101 Cash A/C			100
03-Jul	No.112 Accounts Receivable A/C ( Satchel World )	Dr	2200
	To No.401 Sales Revenue A/C			2200
03-Jul	No.505 Cost of Goods Sold A/C	Dr	1400
	To No.120 Inventory A/C			1400
09-Jul	No.201 Accounts Payable( Trunk Manufacturers A/C )	Dr	1620
	To No.414 Sales Discounts			32.4
	To No.101 Cash A/C			1587.6
12-Jul	No.101 Cash A/C	Dr	1980
	No.412 Sales Returns and Allowances A/C	Dr	220
	To No.112 Accounts Receivable A/C ( Satchel World )			2200
17-Jul	No.112 Accounts Receivable A/C ( Lady Go Go )	Dr	1400
	To No.401 Sales Revenue A/C			1400
17-Jul	No.505 Cost of Goods Sold A/C	Dr	1030
	To No.120 Inventory A/C			1030
18-Jul	No.120 Inventory A/C	Dr	1900
	To No.201 Accounts Payable( Holiday manufacturers )			1900
18-Jul	Freight A/C		125
	To No.101 Cash A/C			125
20-Jul	No.201 Accounts Payable( Holiday manufacturers )	Dr	300
	To No.120 Inventory A/C			175
	To Freight A/C			125
21-Jul	No.101 Cash A/C	Dr	1260
	No.412 Sales Returns and Allowances A/C	Dr	140
	To No.112 Accounts Receivable A/C ( Satchel World )			140
22-Jul	No.112 Accounts Receivable A/C ( Vagabond )	Dr	2400
	To No.401 Sales Revenue A/C			2400
22-Jul	No.505 Cost of Goods Sold A/C	Dr	1350
	To No.120 Inventory A/C			1350
30-Jul	No.201 Accounts Payable( Holiday manufacturers )	Dr	1600
	To No.101 Cash A/C			1600
31-Jul	No.412 Sales Returns and Allowances A/C	Dr	200
	To No.112 Accounts Receivable A/C ( Vagabond )			200
31-Jul	No.120 Inventory A/C		120
	To No.505 Cost of Goods Sold A/C			120