Marigold Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Marigold Warehouse uses a perpetual inventory system the earnings approach. At the end of June its inventory consisted of 25 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred: July 1 2 4 10 12 15 18 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination. The correct company paid $130 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 $80 each on account. Issued a $400 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 54 suitcases that cost $30 each to Fly-By-Night for $80 each on account. Gave Fly-By-Night a $160 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. 21 23 30 31 Date Account Titles and Explanation Debit Credi July 1 Merchandise Inventory 1500 Accounts Payable (Purchase on account.) No Entry July 2 0 No Entry July 4 Accounts Payable 150 Merchandise Inventory (To record credit for goods returned.) Accounts Receivable July 10 3600 Sales (To record sales on account.) Cost of Goods Sold July 10 1350 Merchandise Inventory (To record cost of goods sold.) July 12 Sales Returns and Allowances 400 Accounts Receivable (To record sales return.) July 12 Merchandise Inventory 300 Cost of Goods Sold (Cost of goods returned.) Merchandise Inventory July 15 1650 Accounts Payable (Purchase on account.) Merchandise Inventory July 18 150 Cash (To record freighton purchase.) Accounts Receivable July 21 4320 Sales (To record sales on account.) Cost of Goods Sold July 21 1620 Merchandise Inventory (To record cost of goods sold.) Sales Returns and Allowances July 23 160 Accounts Receivable (To record sales return.) Accounts Payable July 30 1350 Cash (Payment on account.) July 31 Cash 3300 Accounts Receivable (Collection on account.) Your answer is partially correct. 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 1200 July 4 Bal. 150 July 1 1500 July 10 1350 July 12 150 July 21 1710 July 15 1650 July 18 150 Bal. 1140 eTextbook and Media List of Accounts * Your answer is incorrect. 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. 44 Number of suitcases on hand Average cost per suitcase 32.73 eTextbook and Media List of Accounts