' Debit Credit
------- ------
July 1
No.120 Merchandise Inventory $1,800
No.201 Accounts Payable $1,800
(purchase suitcases on account from Trunk Manufacturers,2/10,n/30)
(freight paid by seller)
July 3
No.112 Accounts Receivable $2,000
No.401 Sales $2,000
No.505 Cost of Goods Sold $1,200
No.120 Merchandise Inventory $1,200
(Sold suitcases on account to Satche World)
July 9
No.201 Accounts Payable $1,800
No.101 Cash $1,764
No.505 Cost of Goods Sold $36
(Paid Trunk Manufacturers with 2% discount)
July 12
No.101 Cash $1,980
No.414 Sales Discounts $20
No.112 Accounts Receivable $2,000
(Receive payment from Satche World)
July 17
No.112 Accounts Receivable $1,500
No.401 Sales $1,500
No.505 Cost of Goods Sold $900
No.120 Merchandise Inventory $900
(Sold suitcases on account to Going Concern)
July 18
No.120 Merchandise Inventory $1,700
No.201 Accounts Payable $1,700
(purchase suitcases on account from Kingman Manufacturers,1/10,n/30)
No.505 Cost of Goods Sold $100
No.101 Cash $100
(freight for suitcases purchased)
July 20
No.201 Accounts Payable $300
No.120 Merchandise Inventory $300
(return suitcases to Kingman Manufacturers)
July 21
No.101 Cash $1,485
No.414 Sales Discounts $15
No.112 Accounts Receivable $1,500
(payment by The Going Concern)
July 22
No.112 Accounts Receivable $2,250
No.401 Sales $2,250
No.505 Cost of Goods Sold $1,350
No.120 Merchandise Inventory $1,350
(Sold suitcases on account to Fly-By-Night)
July 30
No.201 Accounts Payable $1,400
No.101 Cash $1,400
(paid Kingman Manufacturers with no discount)
July 31
No.412 Sales Returns and Allowances $200
No.112 Accounts Receivable $200
No.120 Merchandise Inventory $120
No.505 Cost of Goods Sold $120
(suitcases returned by Fly-By-Night)