Novak Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Novak Warehouse uses a perpetual inventory system the earnings approach. At the end of June its inventory consisted of 40 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 n/30, FOB destination. The correct company paid $120 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 $50 each on account. Issued a $250 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 63 suitcases that cost $30 each to Fly-By-Night for $50 each on account. Gave Fly-By-Night a $100 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 Novak 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.) Debit Credit Date July 1 Account Titles and Explanation Purchases Accounts Payable (Purchase on account.) No Entry July 2 July 4 Accounts Payable Purchase Returns and Allowances (To record credit for goods returned.) Accounts Receivable July 10 Sales (To record sales on account.) Sales Returns and Allowances Accounts Receivable (To record cost of goods sold.) Purchases Accounts Payable (To record sales return.) (Cost of goods returned.) e Textbook and Media List of Accounts 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 $