OQuin co. Distributes suitcases to retail stores and extends credit terms of 1/10,n/30 to all of Iits costumers. At the end of June, oquinns inventory consisted of suitcases costing $1200. During the month of July the following transactions occurred.
July1. Purchased suitcases on account for $1800 from emerson manufacturers, FOB destination, 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 straume satchels for $2000. The cost of suitcases sold is $1200.
9. Paid Emerson manufacturers in full.
12. Received payment in full from straume satchels.
17. Sold suitcases on account to the going concern for $1800. The cost of the suitcases sold was $1080.
18. Purchased suitcases on account for $1900 from hume manufacturers, FOB shipping point, terms 1/10, n/30. The appropriate party also made a cash payment of $125 for freight on this date.
20. Received $300 credit (including freight) for suitcases returned to hume manufacturers.
21. Received payment in full from the going concern.
22. Sold suitcases on account to desmond's for $2250. The cost of suitcases sold was $1350.
30. Paid hume manufacturers in full.
31. Granted desmond's $200 credit for siutcases returning costing $120.
