Concord Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Concord Warehouse uses a perpetual inventory system the earnings approach. At the end of June its inventory consisted of 40 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.
2		The correct company paid $125 freight on the July 1 purchase.
4		Received $150 credit for five suitcases returned to Trunk Manufacturers because they were damaged.
10		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.
15		Purchased 60 additional suitcases from Trunk Manufacturers for $27.50 each, terms n/30, FOB shipping point.
18		Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers.
21		Sold 63 suitcases that cost $30 each to Fly-By-Night for $80 each on account.
23		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.

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 > V > > Determine the number of suitcases on hand at the end of the month and calculate the average cost per suitcase of the inventory on hand. Number of suitcases on hand Average cost per suitcase $