2 4 10 Marigold Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Marigold Warehouse uses a perpetual inventory system the earnings approach. At the end of June its inventory consisted of 25 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination. The correct company paid $130 freight on the July 1 purchase. Received $150 credit for five suitcases returned to Trunk Manufacturers because they were damaged. I Sold 45 suitcases that cost $30 each to Satchel World for $80 each on account 12 Issued a $400 credit for five 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 $27.50 each, terms 1/30, FOB shipping point. Paid $150 freight to A Trucking Company for merchandise purchased from Trunk Manufacturers. Sold 54 suitcases that cost $30 each to Fly By Night for $80 each on account. Gave Fly By Night a $160 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. 15 18 21 23 Record the transactions for the month of July for Marigold Warehouse. (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 for the amounts. Recordjoumal entries in the order presented in the problem.) Date Debit Credit aly 1 1500 Account Titles and Explanation Merchandise Inventory Accounts Payable (Purchase on account.) No Entry 1500 sy 2 No Entry uly 4 Accounts Payable 150 150 Merchandise Inventory To record credit for goods returned) (Purchase on account.) Freight Out July 18 150 Freight Out Cash 14 (To record freight on purchase.) Create a T account for Merchandise Inventory. Post the opening balance and July's transactions, and calculate the July 31 balance. (Post entries in the order of journal entries presented in the previous part) Merchandise Inventory July 4 Bal 750 150 0 July 1 1500 July 10 1350 July 12 150 July 21 1620 July 15 1650 Bal. 930 4050 4050 Determine the number of suitcases on hand at the end of the month and calculate the average cost per suitcase of the inventor on hand. 36 Number of suitcases on hand Average cost per suitcase $ 25.83