Flounder Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Flounder Warehouse uses a perpetual inventory system and the earnings approach. At the end of June, its inventory consisted of 35 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred: July 1 2 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination. The correct company paid $135 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 $55 each on account. 12 Issued a $275 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 60 suitcases that cost $30 each to Fly-By-Night for $55 each on account. 23 30 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. 31 Received balance owing from Satchel World. Record the transactions for the month of July for Flounder 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 O for the amounts. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record cost of goods sold.) (To record sales return.) (To record cost of goods returned.) (To record sales on account.) (To record cost of goods sold.) 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 Determine the number of suitcases on hand at the end of the month. Number of suitcases on hand