Problem - Ready-Set-Go Co. distributes suitcases to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of June, Ready-Set-Go's inventory consisted of suitcases costing $2,400. During the month of July, the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $3,400 from Trunk Manufacturers, FOB destination, terms 3/10, n/30. The appropriate party also made a cash payment of $180 for freight on this date.
July 3 Sold suitcases on account to Satchel World for $3,600. The cost of suitcases sold is $2,160.
July 9 Paid Trunk Manufacturers in full.
July 12 Received payment in full from Satchel World.
July 17 Sold suitcases on account to Lady GoGo for $1,900. The cost of the suitcases sold was $1,140.
July 18 Purchased suitcases on account for $1,820 from Holiday Manufacturers, FOB shipping point, terms 2/10, n/30. The appropriate party also made a cash payment of $170 for freight on this date.
July 20 Received $360 credit (including freight) for suitcases returned to Holiday Manufacturers.
July 21 Received payment in full from Lady GoGo.
July 22 Sold suitcases on account to Vagabond for $3,000. The cost of suitcases sold was $1,800.
July 30 Paid Holiday Manufacturers in full.
July 31 Granted Vagabond $270 credit for suitcases returned costing $162.
Ready-Set-Go'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 Ready-Set-Go using a perpetual inventory system. (Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)