P5.2B (LO 1, 2, 3) Travel Warehouse Ltd. distributes suitcases to retail stores. At the end of June, Travel Warehouse's inventory consisted of 60 suitcases purchased at $50 each. Travel Warehouse uses a perpetual inventory system. Travel Warehouse has experienced a 4% return rate historically. During the month of July, the following merchandising transactions occurred: July 2 Purchased 75 suitcases on account for $60 each from Trunk Manufacturers Ltd., terms 2/10. n/30. 3 Received a $240 credit from Trunk Manufacturers after returning four suitcases because they were damaged. 6 Sold 55 suitcases on account to Satchel World Inc. for $90 each, with an individual cost of $50, terms n/45. 7 Issued a $270 credit for three suitcases returned by Satchel World because they were the wrong model. The suitcases were returned to inventory. 9 Sold three suitcasesthis time the right model numberon account to Satchel World Inc. for $100 each with an individual cost of $60. terms n/30. 11 Paid Trunk Manufacturers the balance owing. 13 Sold 25 suitcases on account to The Going Concern Limited for $100 each, with an individual cost of $60, terms n/30. 16 Purchased 70 suitcases on account for $4,340 from Holiday Manufacturers, terms n/30. 17 Issued a $500 credit for five suitcases returned by The Going Concern because they were damaged. These suitcases were not restored to inventory. 20 Received payment in full from Satchel World for all transactions. 27 Received payment in full from The Going Concern. Instructions 1. Record the July transactions. (Record transactions to the nearest dollar.) 2. Set up a T account for the Inventory account. Enter the opening balance, post the transactions related to inventory prepared in part (b), and determine the ending balance in the account. 3. When Travel Warehouse counted its inventory on July 31, it determined that there were 119 suitcases with a total cost of $7,210. Record the adjusting entry for the inventory theft or shrinkage