PS-1A Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, 1/30 Joumalize purchase and sales o all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing transactions under a perpetual $1200. During the month of July the following merchandising transactions occurred. inventory system July 1 Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destina- (502, 3) tion, terms 2/10, 1/30. The appropriate party also made a cash payment of $100 for freight on this date 3 Sold suitcases on account to Satchel World for $2,000. The cost of suitcases sold is $1,200. 9 Paid Trunk Manufacturers in full. 12 Received payment in full from Satchel World. 17 Sold suitcases on account to The Going Concern for $1,500. The cost of the suitcases sold was $900 18 Purchased suitcases on account for $1,700 from Kingman Manufacturers, FOB shipping point, terms 1/10, 1/30. The appropriate party also made a cash payment of $100 for freight on this date 20 Received $300 credit (including freight) for suitcases returned to Kingman Manufacturers 21 Received payment in full from The Going Concern. 1 22 Sold suitcases on account to Fly-By-Night for $2,250. The cost of suitcases sold was $1,350 30 Paid Kingman Manufacturers in full. 31 Granted Fly-By-Night $200 credit for suitcases returned costing $120. Sansomite's chart of accounts includes the following: No 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 401 Sales, No 412 Sales Returns and Allowances, No. 414 Sales Discounts, No. 505 Cost of Goods Sold Instructions Journalize the transactions for the month of July for Sansomite using a perpetual inventory system