Sansomite Co. distributes suitcases to retail stores and extends credit terms of

Question

Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its customers. At the end of June, Sansomite's inventory consisted of suitcases costing $1,615. During the month of July the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $3,277 from Trunk Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of $178 for freight on this date.
3 Sold suitcases on account to Satchel World for $2,375. The cost of suitcases sold is $1,425.
9 Paid Trunk Manufacturers in full.
12 Received payment in full from Satchel World.
17 Sold suitcases on account to The Going Concern for $1,546. The cost of the suitcases sold was $928.
18 Purchased suitcases on account for $1,796 from Kingman Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of $199 for freight on this date.
20 Received $385 credit (including freight) for suitcases returned to Kingman Manufacturers.
21 Received payment in full from The Going Concern.
22 Sold suitcases on account to Fly-By-Night for $3,043. The cost of suitcases sold was $1,826.
30 Paid Kingman Manufacturers in full.
31 Granted Fly-By-Night $260 credit for suitcases returned costing $156.


Sansomite's chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Merchandise Inventory, No. 201 Accounts Payable, No. 401 Sales, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, No. 505 Cost of Goods Sold.

Instructions

Journalize the transactions for the month of July for Sansomite using a perpetual inventory system. (For multiple debit/credit entries, list amounts from largest to smallest eg 10, 5, 3, 2. Round answers to 0 decimal places, e.g. 125.)
Date Description/Account Debit Credit
July 1

July 3

(To record credit sale to Satchel World.)


(To record cost of merchandise sold.)
July 9


July 12


July 17

(To record credit sale to The Going Concern.)


(To record cost of merchandise sold.)
July 18

(To record goods purchased.)


(To record freight on goods purchased.)
July 20

July 21


July 22

(To record credit sale to Fly-By-Night.)


(To record cost of merchandise sold.)
July 30

July 31

(To record credit to Fly-By-Night for returned goods.)


(To record cost of goods returned.)

Explanation / Answer

2137.5

1391.4

702.7

4231.6

2137.5

1391.4

260

392.1

2783

6964

3277

1796

5073

1615

3277

1796

156

6844

260

6704

6964

260

260

237.5

154.6

392.1

156

4023

4179

Dr $    Cr   $ 1-Jul Purchases 3277     Truck manufacturers 3277 (Being credit purchases from Truck manufacturers) 3-Jul Satchel World 2375      Sales 2375 (Being Credit sales to Satchel world) 9-Jul Truch Manufacturers 3277        Cash 2621.6        Discount Received 655.4 (Being cash paid & 20% Discount Received) 12-Jul Cash 2137.5 Discount Allowed 237.5      Satchel World 2375 (Being cash received and discount allowed) 17-Jul Going concern 1546         Sales 1546 (Being Credit Sales) 18-Jul Purchases 1796      Kingman Manufacturers 1796 (Being Credit Purchases) 20-Jul Kingman Manufacturers 186        Purchase Returns 186 (Being Purchase returns) 21-Jul Cash 1391.4 Discount allowed 154.6       Going concern 1546 (Being cash received from going concern) 22-Jul Fly-By-Night 3043       Sales 3043 (Being Credit Sales ) 30-Jul Kingman Manufacturers 1610       Cash 1610 (Being remaining cash paid ) 31-Jul Sales Return 260     Fly-By-Night 260 (Being Sales return)

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