Ayayai Ltd. distributes suitcases to retail stores. At the end of June, Ayayai's inventory consisted of 70 suitcases purchased at $50 each. Ayayai uses a perpetual inventory system. Ayayai has experienced a 5% return rate historically. During the month of July, the following merchandising transactions occurred: July 2Purchased 75 suitcases on account for $70 each from Sandhill Ltd., terms 2/10, n/30. 3Received a $280 credit from Sandhill after returning four suitcases because they were damaged. 6Sold 60 suitcases on account to Satchel World Inc. for $90 each, with an individual cost of $50, terms n/45. 7Issued a $270 credit for three suitcases returned by Satchel World because they were the wrong model. The suitcases were returned to inventory. 9Sold three suitcases-the right model number this time-on account to Satchel World Inc. for $100 each, with an individual cost of $70, terms n/30 11Paid Sandhill the balance owing 13Sold 30 suitcases on account to The Going Concern Limited for $100 each, with an individual cost of $70, terms n/30 16Purchased 80 suitcases on account for $5,760 from Holiday Manufacturers, terms n/30. 17Issued a $500 credit for five suitcases returned by The Going Concern because they were damaged. These suitcases were not restored to inventory. 20 received payment in full from satchel world for all transactions. 27Received payment in full from The Going Concern. Set up T account for the Inventory account. Enter the opening balance, post the transactions related to inventory prepared in (b), and determine the ending balance in the account. (Round your answers to O decimal places, e.g. 5,275.) Inventory
Ayayai Ltd. distributes suitcases to retail stores. At the end of June, Ayayai's inventory consisted of 70 suitcases purchased at $50 each. Ayayai uses a perpetual inventory system. Ayayai has experienced a 5% return rate historically.
During the month of July, the following merchandising transactions occurred:
July
2Purchased 75 suitcases on account for $70 each from Sandhill Ltd., terms 2/10, n/30.
3Received a $280 credit from Sandhill after returning four suitcases because they were damaged.
6Sold 60 suitcases on account to Satchel World Inc. for $90 each, with an individual cost of $50, terms n/45.
7Issued a $270 credit for three suitcases returned by Satchel World because they were the wrong model. The suitcases were returned to inventory.
9Sold three suitcases-the right model number this time-on account to Satchel World Inc. for $100 each, with an individual cost of $70, terms n/30
11Paid Sandhill the balance owing
13Sold 30 suitcases on account to The Going Concern Limited for $100 each, with an individual cost of $70, terms n/30
16Purchased 80 suitcases on account for $5,760 from Holiday Manufacturers, terms n/30.
17Issued a $500 credit for five suitcases returned by The Going Concern because they were damaged. These suitcases were not restored to inventory.
20 received payment in full from satchel world for all transactions.
27Received payment in full from The Going Concern.
Set up T account for the Inventory account. Enter the opening balance,
Inventory
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