Problem 5-10A Your answer is partially correct. Try again. Bridgeport Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Bridgeport Warehouse uses a periodic inventory system the earnings approach. At the end of June its inventory consisted of 36 suitcases purchased at $54 each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for $54 each from Trunk Manufacturers, terms n/30, FOB destination. 2 The correct company paid $135 freight on the July 1 purchase. 4 Received $270 credit for five suitcases returned to Trunk Manufacturers because they were damaged. 10 Sold 45 suitcases that cost $54 each to Satchel World for $55 each on account. 12 Issued a $275 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory. 15 Purchased 60 additional suitcases from Trunk Manufacturers for $51.50 each, terms n/30, FOB shipping point. 18 Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers. 21 Sold 54 suitcases that cost $54 each to Fly-By-Night for $55 each on account. 23 Gave Fly-By-Night a $110 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers. 30 Paid Trunk Manufacturers for the July 1 purchase. 31 Received balance owing from Satchel World. Record the July transactions for Bridgeport Warehouse. Assume that Bridgeport uses the earnings approach. (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 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation July 1 Merchandise Inventory Accounts Payable (Purchase on account.) July 2 No Entry No Entry July 4 Accounts Payable Merchandise Inventory (To record credit for goods returned.) July 10 Accounts Receivable July 12 Sales (To record sales on account.) (To record sales return.) July 15 (Purchase on account.) July 18 Debit 2700 Credit 2700