Question

Whispering Winds Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Whispering Winds Warehouse uses a periodic inventory system and at the end of June its inventory consisted of 26 suitcases purchased at $42 each. During the month of July, the following merchandising transactions occurred:

July 1		Purchased 50 suitcases on account for $42 each from Trunk Manufacturers, terms n/30, FOB destination.
2		The correct company paid $135 freight on the July 1 purchase.
4		Received $210 credit for five suitcases returned to Trunk Manufacturers because they were damaged.
10		Sold 45 suitcases that cost $42 each to Satchel World for $55 each on account.
12		Issued a $275 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory.
15		Purchased 60 additional suitcases from Trunk Manufacturers for $31.50 each, terms n/30, FOB shipping point.
18		The company paid $170 freight on the July 15 purchase.
21		Sold 54 suitcases that cost $30 each to Fly-By-Night for $55 each on account.
23		Gave Fly-By-Night a $110 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers.
30		Paid Trunk Manufacturers for the July 1 purchase.
31		Received balance owing from Satchel World.

Record the July transactions for Whispering Winds Warehouse. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit

Answer 1

Date	Account Titles	Explanation	Debit $	Credit $
July 1	Purchase account Dr.	Being Purchased of 50 suitcases at the rate $42 each from Trunk Manufacturers	2100
	Trunk Manufacturer Cr.	Being Purchased of 50 suitcases at the rate $42 each from Trunk Manufacturers		2100
July 2	Freight Account Dr.	Paid $135 as freight on Purchases made on July 1.	135
	Cash or Bank Cr.	Paid $135 as freight on Purchases made on July 1.		135
July 4	Trunk Manufacturer Dr.	Received $210 credit for five suitcases returned to Trunk Manufacturers because they were damaged	210
	Purchase account Cr.	Received $210 credit for five suitcases returned to Trunk Manufacturers because they were damaged		210
July 10	Satchel World          Dr	Sold 45 suitcases to Satchel World for $55 each on account	2475
	Sales account           Cr.	Sold 45 suitcases to Satchel World for $55 each on account		2475
July 12	Sales account           Dr.	Issued a $275 credit for five suitcases returned by Satchel World	275
	Satchel World          Cr	Issued a $275 credit for five suitcases returned by Satchel World		275
July 15	Purchase account Dr.	Purchased 60 additional suitcases from Trunk Manufacturers for $31.50 each	1890
	Trunk Manufacturer Cr.	Purchased 60 additional suitcases from Trunk Manufacturers for $31.50 each		1890
July 18	Freight Account Dr.	Paid $170 as freight on Purchases made on July 1.	170
	Cash or Bank Cr.	Paid $170 as freight on Purchases made on July 1.		170
July 21	Fly-By-Night          Dr	Sold 54 suitcases to Fly-By-Night for $55 each on account	2970
	Sales account           Cr.	Sold 54 suitcases to Fly-By-Night for $55 each on account		2970
July 23	Sales account           Dr.	Gave Fly-By-Night a $110 credit for two returned suitcases	110
	Fly-By-Night          Cr	Gave Fly-By-Night a $110 credit for two returned suitcases		110
July 30	Trunk Manufacturer Dr.	Paid Trunk Manufacturers for the July 1 purchase.	1965
	Cash or Bank Cr.	Paid Trunk Manufacturers for the July 1 purchase.		1965
July 31	Cash or Bank Dr.	Amount from Satchel World in full and final settlement	2200
	Sales account           Cr.	Amount from Satchel World in full and final settlement		2200