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 $2400. During the month of July the following merchandising transactions occurred.July 1 Purchased suitcases on account for $3400 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.3 Sold suitcases on account to Satchel World for $3600. The cost of suitcases sold is $2160.9 Paid Trunk Manufacturers in full.12 Received payment in full from Satchel World.17 Sold suitcases on account to Lady GoGo for $1900. The cost of the suitcases sold was $1140.18 Purchased suitcases on account for $1820 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.20 Received $360 credit (including freight) for suitcases returned to Holiday Manufacturers.21 Received payment in full from Lady GoGo.22 Sold suitcases on account to Vagabond for $3000. The cost of suitcases sold was $1800.30 Paid Holiday Manufacturers in full.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.)
