Question 1 of 2 40.08/50 Crane distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Crane's inventory consisted of suitcases costing 1,400. During the month of July, the following merchandising transactions occurred. July 1 Purchased suitcases on account for 1,800 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of 90 for freight on this date. 3 Sold suitcases on account to Satchel World for 2,100. The cost of suitcases sold was 1,800. 9 Paid Trunk Manufacturers in full. 12 Received payment in full from Satchel World. 17 Sold suitcases on account to Lady GoGo for 1,800. The cost of the suitcases sold was 1,080. 18 8 # Purchased suitcases on account for 2,200 from Holiday Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of 120 for freight on this date. Received 270 credit (including freight) for suitcases returned to Holiday Manufacturers. Received payment in full from Lady GoGo. Sold suitcases on account to Vagabond for 2,700. The cost of suitcases sold was 1,200. Paid Holiday Manufacturers in full. Granted Vagabond 320 credit for suitcases returned costing 140. Crane's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 201 Accounts Payable, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold. Journalize the transactions for the month of July for Crane using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter for the amounts.) Account Titles and Explanation Inventory Debit Credit > K Accounts Payable Accounts Receivable Sales Revenue (To record credit sale) Cost of Goods Sold K Inventory (To record cost of merchandise sold) Accounts Payable Cash Inventory Cash Sales Discounts Accounts Receivable Accounts Receivable Sales Revenue (To record credit sale) Cost of Goods Sold Inventory (To record cost of merchandise sold) Inventory Accounts Payable (To record purchase of suitcases) Inventory > > Cash (To record freight paid) Accounts Payable Inventory Cash Sales Discounts Accounts Receivable Accounts Receivable Sales Revenue (To record credit sale) Cost of Goods Sold Inventory (To record cost of merchandise sold) Accounts Payable Cash Sales Returns and Allowances Accounts Receivable (To record merchandise returned) Inventory Cost of Goods Sold 2,100 1.800 1.800 1,800 2,700 2,100 1,200 1800 1,764 36 2,100 140 1800 1080 2.320 270 1.800 2,700 1,200 1,930 320