CHICK Question 2 "Urban Traveller Company is a wholesaler of suitcases. Credit terms are 1/10, n/30 for all its retail customers. At the end of June, Urban Traveller's ending inventory was $1,200. The chart of accounts of Urban Traveller includes the following accounts: Cash at Bank, Accounts Receivable, Inventory, Accounts Payable, Sales Revenue, Sales Returns and Allowances, Sales Discounts, and Cost of Goods Sold. During the month of July, the merchandising transactions are as follows: Date Transactions Jul 1Purchased suitcases on credit for $1,800 from Hostad Manufacturers, FOB destination, terms 2/10, n/30. Freight charges paid to the shipping company amounted to $100. 3 Sold suitcases on account to Kaye Satchels for $2,000, FOB shipping point. The cost of suitcases sold is $1,200. 4 Paid $100 transportation charges on the July 3 sale to Kaye Satchels. The charges were added to the invoice. 9 Paid Hostad Manufacturers in full for the July 1 purchase. 15 Received payment in full from Kaye Satchels for the July sale. 17 Sold suitcases on account to The Going Concern for $1,800. The cost of the suitcases sold was $1,080. 18 Purchased suitcases on account for $1,900 from Leeson Leathers, FOB shipping point, terms 1/10, n/30. Freight charges of $125 was paid to the courier company on the same date. 20 Received $300 credit (includes freight charges) for the return of defective suitcases to Leeson Leathers. 21 Received payment in full from The Going Concern for the suitcases sold on July 17. 22 Sold suitcases on account to Cassidy Trading for $2,250. The cost of suitcases sold was $1,350. 29 Paid in full the balance due to Leeson Leathers for the July 18 purchase. 31 Issued a $200 credit memo to Cassidy Trading for suitcases returned. The cost of the suitcases was $120. Required: Urban Traveller uses the perpetual inventory system to record inventory movements. You are required to journalise the merchandising transactions for the month of July [Total: 19 marks]