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Urdan Co. distributes suitcases to retail stores and offers credit terms of 1/10,n/30 with FOB destination to all customers. At the end of June, Urdan's

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Urdan Co. distributes suitcases to retail stores and offers credit terms of 1/10,n/30 with FOB destination to all customers. At the end of June, Urdan's inventory consisted of suitcases cost $6,000. The selling price is marked up 40% from its cost. During the month of July, the following transactions occurred. July 1 Purchased suitcases on account for $1,800 from Hostad Manufacturers, FOB destination with credit terms 2/10, n/30. The appropriate party made cash payment of $100 for freight 3 Sold suitcases on account to Kaye Satchels for $2,800 with $200 freight. 4 Purchased $8,000 machine, 50% cash was paid and 10% note was issued for the rest. 9 Paid Hostad Manufacturers in full amount. 12 Received payment in full amount from Kaye Satchels. 15 Received $120 utility bill, cash will be paid on next month. 17 Sold suitcases on account to The Going Concern for $2,100 with $200 freight. 18 Purchased suitcases on account for $3,900 from Nelson Manufacturers, FOB shipping point with credit terms 1/10, n/30. The prepaid freight of $150 was added to the invoice. 20 Received $300 credit for suitcases returned to Nelson Manufacturers due to damage. 21 Received payment in full amount from The Going Concern. 22 Sold suitcases on account to Wopat's for $3,920 with $120 freight. 30 Paid Nelson Manufacturers in full amount 31 Granted Wopat's $280 credit for suitcases returned. 31 Paid $450 salary Instructions: 1. Record the journal entry if Urdan Co. uses the perpetual inventory system. 2. Record the journal entry if Urdan Co. uses the periodic inventory system. 3. Suppose at the end of July, physical count of inventory costs $5,000. 3.1 Under the periodic system, show the calculation of Cost of Goods Sold for the month of July and record the adjusting entry. 3.2 Under the perpetual system, record the adjusting entry

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