P5-3B COBURN FURP5-3BCoburn Furniture Company engaged in the following transactions during July of the current year:

Jul. 2Purchased inventory for cash, $12,800, less a quantity discount of $1,800.5Purchased store supplies on credit terms of net eom, $6,800.8Purchased inventory of $54,000 less a quantity discount of 10 percent, plus freight charges of $2,200. Credit terms are 3/15, n/30.9Sold goods for cash, $21,600. Coburn's cost of these goods was $13,000.11Returned $2,000 (net amount after the quantity discount) of the inventory purchased on July 8. It was damaged in shipment.12Purchased inventory on credit terms of 3/10, n/30, $60,000.14Sold inventory on credit terms of 2/10, n/30 for $138,400, less a $13,840 quantity discount (cost, $83,000).16Received and paid the electricity bill, $6,400.20Received returned inventory from the July 14 sale, $5,000 (net amount after the quantity discount). Coburn shipped the wrong goods by mistake. Coburn's cost of the inventory received was $3,000.21Paid supplier for goods purchased on July 8 less the discount and the return.23Received $87,120 cash in partial settlement of the account from the customer who purchased inventory on July 14. Granted the customer a 1 percent discount and credited the customer's account receivable for $88,000.31Paid for the store supplies purchased on July 5.

Required

1. Journalize the preceding transactions on the books of Coburn Furniture Company. The company uses the perpetual inventory system.
2. Suppose the balance in inventory was $45,500 on July 1. What is the balance in inventory on July 31?

2

Journalizing purchase and sale transactions under the perpetual inventory system