Reference no: EM132593125
Question - MAX 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, MAX's inventory consisted of suitcases costing Tk.1,200. During the month of July, the following merchandising transactions occurred.
July 1 Purchased suitcases on account for Tk.1,800 from Emerson Manufacturers, FOB destination, terms 2/10, n/30. The appropriate party also made a cash payment of Tk.100 for freight on this date.
July 3 Sold suitcases on account to SUB for Tk.2,000. The cost of suitcases sold is Tk.1,200.
July 9 Paid Emerson Manufacturers in full.
July 12 Received payment in full from SUB.
July 17 Sold suitcases on account to The Going Concern for Tk.1,800. The cost of the suitcases sold was Tk.1,080.
July 18 Purchased suitcases on account for Tk.1,900 from Hume Manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of Tk.125 for freight on this date.
July 20 Received Tk.300 credit (including freight) for suitcases returned to Hume Manufacturers.
July 21 Received payment in full from The Going Concern.
Instructions - Journalize the transactions for the month of July for MAX using a perpetual inventory system.