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 suitcases costing $1,200. During the month of July the following merchandising transactions occurred. July 1 Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destina- tion, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date. 3 Sold suitcases on account to Satchel World for $2,000. The cost of suitcases sold is $1,200. 9 Paid Trunk Manufacturers in full. 12 Received payment in full from Satchel World. 17 Sold suitcases on account to The Going Concern for $1,500. The cost of the suitcases sold was $900. 18 Purchased 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 suitcases returned to Kingman Manufacturers. 21 Received payment in full from The Going Concern. 22 Sold suitcases on account to Fly-By-Night for $2,250. The cost of suitcases sold was $1,350. 30 Paid Kingman Manufacturers in full. 31 Granted Fly-By-Night $200 credit for suitcases returned costing $120. structions purnalize the transactions for the month of July for Sansomite using a perpetual inventory system.
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 suitcases costing $1,200. During the month of July the following merchandising transactions occurred. July 1 Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destina- tion, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for freight on this date. 3 Sold suitcases on account to Satchel World for $2,000. The cost of suitcases sold is $1,200. 9 Paid Trunk Manufacturers in full. 12 Received payment in full from Satchel World. 17 Sold suitcases on account to The Going Concern for $1,500. The cost of the suitcases sold was $900. 18 Purchased 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 suitcases returned to Kingman Manufacturers. 21 Received payment in full from The Going Concern. 22 Sold suitcases on account to Fly-By-Night for $2,250. The cost of suitcases sold was $1,350. 30 Paid Kingman Manufacturers in full. 31 Granted Fly-By-Night $200 credit for suitcases returned costing $120. structions purnalize the transactions for the month of July for Sansomite using a perpetual inventory system.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 suitcases costing
$1,200. During the month of July the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $1,800 from Trunk Manufacturers, FOB destina-
tion, terms 2/10, n/30. The appropriate party also made a cash payment of $100 for
freight on this date.
3 Sold suitcases on account to Satchel World for $2,000. The cost of suitcases sold is $1,200.
9 Paid Trunk Manufacturers in full.
12 Received payment in full from Satchel World.
17 Sold suitcases on account to The Going Concern for $1,500. The cost of the suitcases
sold was $900.
18 Purchased 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 suitcases returned to Kingman
Manufacturers.
21 Received payment in full from The Going Concern.
22 Sold suitcases on account to Fly-By-Night for $2,250. The cost of suitcases sold was
$1,350.
30 Paid Kingman Manufacturers in full.
31 Granted Fly-By-Night $200 credit for suitcases returned costing $120.
Instructions
Journalize the transactions for the month of July for Sansomite using a perpetual inventory system.
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