Instructions INSTRUCTIONS: a) Prepare journal entries for the month of July using a periodic inventory system in an excel file. Closing stock should be based on the latest purchase price. b) Compute for gross profit. c) Submit assignment through dropbox. This is due on October 15, 4pm. Sammy Co. distributes travelling bags to retail stores and extends credit terms of 1/10, n/30 to all customers. At the end of June, Sammy's closing stock consisted of 70 travelling bags P830 each. During the month of July the following merchandising transactions occurred, 1 Purchased 60 suitcases on account for P830 each from Bag Manufacturing Co, FOB Destination, terms 2/10. n/30. The appropriate party paid freight of P1,400. 3 Sold 40 suitcases on account to Metro World for P1,560 each. 9 Paid the account due to Bag Manufacturing. 12 Received payment from Metro World for the account on July 3. 17 Sold 30 suitcases on account to Going and Coming for P1,560 each. 18 Purchased 60 suitcases for P58, 200 from Kingsmen Manufacturer, FOB Shipping Point, terms 1/10, n/30. The invoice included freight of P9,000 paid by Kingsmen. 20 Received credit for P9, 700 (including freight) for 10 suitcases returned to Kingsmen. 21 Received payment in full from Going and Coming. 22 Sold 60 suitcases on account to Fly-By-Day for P1,560 each. 30 Paid Kingsmen in full of account due. 31 Granted Fly-By-Day P500 allowance for 4 suitcases which were found with slight defect. Unsold stock was counted to be 50 pieces all coming from the last purchase made. Chart of accounts includes the following: Cash, Accounts Receivable, Merchandise Inventory, Accounts Payable, Sales, Sales Returns and Allowances, Sales Discounts, Cost of Sales