Culver Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Culver Warehouse uses a perpetual inventory system the earnings approach. At the end of June its inventory consisted of 30 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred:

Create a T account for Merchandise Inventory. Post the opening balance and Julys transactions, and calculate the July 31 balance

July 1		Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination.
2		The correct company paid $120 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 $60 each on account.
12		Issued a $300 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 57 suitcases that cost $30 each to Fly-By-Night for $60 each on account.
23		Gave Fly-By-Night a $120 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.