Travel Warehouse Ltd. distributes suitcases to retail stores. At the end of June, Travel Warehouse's inventory consisted of 60 suitcases purchased at $50 each. Travel Warehouse uses a perpetual inventory system. During the month of July, the following merchandising transactions occurred: Instructions (a) Record the July transactions. (Record transactions to the nearest dollar.) (b) Set up a T account for the Inventory account. Enter the opening balance, post the transactions related to inventory prepared in part (a), and determine the ending balance in the account. (c) Determine the number of suitcases Travel Warehouse has on hand on July 31. What is the average cost of these suitcases on July 31 ? (Hint: Divide the ending balance in the Inventory account calculated in part (b) and divide it by the number of suitcases on hand at July 31 . Round your answer to the nearest dollar.) (d) Now assume that Travel Warehouse's books uses a periodic inventory system instead of a perpetual inventory system. Record the July transactions, including adjusting entries to record the cost of goods sold at the end of July. (Record transactions to the nearest dollar.) (e) Identify the advantages and disadvantages of Travel Warehouse using a periodic inventory system instead of a perpetual inventory system. Travel Warehouse Ltd. distributes suitcases to retail stores. At the end of June, Travel Warehouse's inventory consisted of 60 suitcases purchased at $50 each. Travel Warehouse uses a perpetual inventory system. During the month of July, the following merchandising transactions occurred: Instructions (a) Record the July transactions. (Record transactions to the nearest dollar.) (b) Set up a T account for the Inventory account. Enter the opening balance, post the transactions related to inventory prepared in part (a), and determine the ending balance in the account. (c) Determine the number of suitcases Travel Warehouse has on hand on July 31. What is the average cost of these suitcases on July 31 ? (Hint: Divide the ending balance in the Inventory account calculated in part (b) and divide it by the number of suitcases on hand at July 31 . Round your answer to the nearest dollar.) (d) Now assume that Travel Warehouse's books uses a periodic inventory system instead of a perpetual inventory system. Record the July transactions, including adjusting entries to record the cost of goods sold at the end of July. (Record transactions to the nearest dollar.) (e) Identify the advantages and disadvantages of Travel Warehouse using a periodic inventory system instead of a perpetual inventory system
