Riverbed Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Riverbed Warehouse uses a perpetual inventory system and the earnings approach. At the end of June, its inventory consisted of 40 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred: July 1 2 4 10 12 15 18 21 23 30 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination. The correct company paid $120 freight on the July 1 purchase. Received $150 credit for five suitcases returned to Trunk Manufacturers because they were damaged. Sold 45 suitcases that cost $30 each to Satchel World for $55 each on account. Issued a $275 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory. Purchased 60 additional suitcases from Trunk Manufacturers for $27.50 each, terms n/30, FOB shipping point. Paid $150 freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers. Sold 63 suitcases that cost $30 each to Fly-By-Night for $55 each on account. Gave Fly-By-Night a $110 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers. Paid Trunk Manufacturers for the July 1 purchase.

Riverbed Warehouse distributes suitcases to retail stores and extends credit terms of \\( n / 30 \\) to all of its custorners. Riverbed Warehouse uses a perpetual inventory system and the earnings approach. At the end of June, its inventory consisted of 40 suiteases purchased at \\( \\$ 30 \\) each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for \\( \\$ \\$ 0 \\) each from Trunk Manufacturers, terms \\( n / 30 \\), FOB destination. 2 The correct compary paid \\( \\$ 120 \\) freight on the July 1 purchase. 4 Received \\( \\$ 150 \\) credit for five suitcases returned to Trunk Manufacturers because they were damaged. 10 Sold 45 suitcases that cost \\( \\$ 30 \\) 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 \\( \\$ 27.50 \\) each, terms \\( n / 30 \\), FOB shipping point. 18 Paid \\( \\$ 150 \\) freight to AA Trucking Company for merchandise purchased from Trunk Manufacturers. 21 Sold 63 suitcases that cost \\( \\$ 30 \\) 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. Create a T account for Merchandise Inventory. Post the opening balance and July's transactions, and calculate the July 31 balance. (Post entries in the order of journal entries presented in the previous part.)