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.