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Current Attempt in Progress Pronghorn Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Pronghorn Warehouse uses
Current Attempt in Progress Pronghorn Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Pronghorn 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: July 1 2 4 10 12 15 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms /30, FOB destination The correct company paid $140 freight on the July 1 purchase. Received $150 credit for five suitcases returned to Trunk Manufacturers because they were damaged. Sold 45 suitcases that cost $30 each to Satchel World for $55 each on account. Issued a $275 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 n/30, FOB shipping point. Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers. Sold 57 suitcases that cost $30 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 18 21 23 30 31 Record the transactions for the month of July for Pronghorn 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Merchandise Inventory Debit Credit uly 1 1500 Accounts Payable (Purchase on account.) 1500 sy 2 Merchandise Inventory 140 Cash 140 :) aly 4 Accounts Payable 150 150 Merchandise Inventory To record credit for goods returned.) aly 10 Accounts Receivable 2475 Sales 2475 (To record sales on account) Question 3 of 6 > - / 15 To record sales on account. aly 10 Cost of Goods Sald 1350 Merchandise Inventory [To record cost of goods sold) 1350 aly 12 Sales Returns and Allowances 275 Accounts Receivable 275 (To record sales return) Merchandise Inventory sly 12 150 Cost of Goods Sold? 150 (Cost of goods returned.) sly 15 Merchandise Inventory 1650 Accounts Payable 1650 (Purchase on account) Jy 18 Merchandise Inventory 150 Cash 150 re to search O RI ENG uly 21 3135 Accounts Receivable 3135 Merchandise Inventory To record sales on account.) 1710 y 21 - Cost of Goods Sold 1710 Merchandise Inventory (To record cost of goods sold.) 110 Jy23 Sales Returns and Allowances 110 Accounts Receivable To record sales return 1350 uly 30 Accounts Payable 1350 Cash (Payment on account.) 2200 uly 31 Accounts Payable 2200 Cash (Collection on account.) EN ! 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 1 1500 July 4 150 July 1 140 July 10 1350 July 12 150 July 21 3135 July 15 1650 July 21 1710 July 18 150 Ba > 2755 e Textbook and Media List of Accounts e to search O Bi C. E 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 S e Textbook and Media Assistance Used e Textbook List of Accounts
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