Travel Warehouse distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. During the month of July the following merchandising transactions occurred.
July 1 Purchased 50 suitcases on account for $30 each from Suitcase Manufacturers, terms 1/15, n/30.
3 Sold 40 suitcases on account to Luggage World for $50 each.
9 Paid Suitcase Manufacturers in full.
12 Received payment in full from Luggage World.
17 Sold 30 suitcases on account to The Travel Spot for $50 each.
18 Purchased 60 suitcases on account for $30 each from Vacation Manufacturers, terms 2/10, n/30. Also made a cash payment of $100 for freight on this date.
20 Received $300 credit for 10 suitcases returned to Vacation Manufacturers.
21 Received payment in full from The Travel Spot.
22 Sold 40 suitcases on account to Vacations-Are-Us for $50 each.
30 Paid Vacation Manufacturers in full.
31 Granted Vacations-Are-Us $250 credit for 5 suitcases returned costing $150.
Instructions Journalize the transactions for the month of July for Travel Warehouse, using a perpetual inventory system. Assume the cost of each suitcase sold was $30.