University Of California, San Diego Operations And Supply Chain Management Assignment Help - Inventory Accounting

Question - 1. 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
$2,400. During the month of July, the following merchandising transactions occurred.
July 1 Purchased suitcases on account for $3,400 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 $3,600. The cost of suitcases sold is $2,160.
9 Paid Trunk Manufacturers in full.
12 Received payment in full from Satchel W orld.
17 Sold suitcases on account to Lady GoGo for $1,900. The cost of the suitcases sold ...Read More was
$1,140.
18 Purchased suitcases on account for $1,820 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 $3,000. The cost of suitcases sold was $1,800.
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.) ...Read Less

Solution Preview - No Solution Preview Available

Original Question Documents

N/A