1.

Ivanhoe Company commenced operations on July 1. Ivanhoe Company uses a periodic inventory system. During July, Ivanhoe Company was involved in the following transactions and events: July 2 Purchased $14,600 of merchandise from Suppliers Inc. on account, terms 2'10, nf30, FOB shipping point. 3 Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers. 4 Paid $500 of freight costs on July 2 shipment. 3 Sold merchandise for $2,400 cash. 11 Paid Suppliers Inc. the full amount owing. 15 Sold merchandise for $6,300 on account. 1,210, nf30, FOB shipping point. 25 Received full payment for the merchandise sold on July 15. 31 Ivanhoe did a physical count and determined there was $10,100 of inventory on hand. Flint Warehouse distributes suitcases to retail stores and extends credit terms of nr'30 to all of its customers. Flint Warehouse uses a periodic inventory system the earnings approach. At the end of June its inventory consisted of 23 suitcases purchased at $60 each. During the month of July, the fol lowing merchandising transactions occurred: July 1 2 4 10 12 15 13 2 1 23 30 31 Purchased 50 suitcases on account for $60 each from Trunk Manufacturers. terms nl30, FOB destination. The correct company paid $170freight on the July 1 purchase. Received $300 credit for ve suitcases returned to Trunk Manufacturers because they were damaged. Sold 45 suitcases that cost $60 each to Satchel World for $55 each on account. Issued a $275 credit for ve suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory. Purchased 60 additional suitcases from Trunk Manufacturers for $57.50 each, terms n130, FOB shipping point. Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers. Sold 54 suitcases that cost $60 each to Fly-By-Night for $55 each on account. Gave Fly-By-Night a $110 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers. Paid Trunk Manufacturers for the July 1 purchase. Received balance owing from Satchel World