P5-1A Sansomite Co. distributes suitcases to retail stores and extends credit terms of 1/10, n/30

Price: $3.99


P5-1A 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 40 suitcases purchased
at $30 each. During the month of July the following merchandising transactions occurred.
July 1 Purchased 60 suitcases on account for $30 each from Trunk Manufacturers, FOB destination,
terms 2/10, n/30.The appropriate party also made a cash payment of $100 for
freight on this date.
3 Sold 40 suitcases on account to Satchel World for $50 each.
9 Paid Trunk Manufacturers in full.
12 Received payment in full from Satchel World.
17 Sold 30 suitcases on account to The Going Concern for $50 each.
18 Purchased 60 suitcases on account for $1,700 from Kingman Manufacturers, FOB
shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of
$100 for freight on this date.
20 Received $300 credit (including freight) for 10 suitcases returned to Kingman
Manufacturers.
21 Received payment in full from The Going Concern.
22 Sold 45 suitcases on account to Fly-By-Night for $50 each.
30 Paid Kingman Manufacturers in full.
31 Granted Fly-By-Night $200 credit for 4 suitcases returned costing $120.
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.