Reference no: EM132953456
Coburn Furniture Company engaged in the following transactions during July of the current year:
Jul. 2 Purchased inventory for cash, $12,800, less a quantity discount of $1,800.5Purchased store supplies on credit terms of net eom, $6,800.
8 Purchased inventory of $54,000 less a quantity discount of 10 percent, plus freight charges of $2,200. Credit terms are 3/15, n/30.
9 Sold goods for cash, $21,600. Coburn's cost of these goods was $13,000.
11 Returned $2,000 (net amount after the quantity discount) of the inventory purchased on July 8. It was damaged in shipment.12Purchased inventory on credit terms of 3/10, n/30, $60,000.
14 Sold inventory on credit terms of 2/10, n/30 for $138,400, less a $13,840 quantity discount (cost, $83,000).
16 Received and paid the electricity bill, $6,400.
20 Received returned inventory from the July 14 sale, $5,000 (net amount after the quantity discount). Coburn shipped the wrong goods by mistake. Coburn's cost of the inventory received was $3,000.
21 Paid supplier for goods purchased on July 8 less the discount and the return.
23 Received $87,120 cash in partial settlement of the account from the customer who purchased inventory on July 14. Granted the customer a 1 percent discount and credited the customer's account receivable for $88,000.31Paid for the store supplies purchased on July 5.
Required
Problem 1: Journalize the preceding transactions on the books of Coburn Furniture Company. The company uses the perpetual inventory system.
Problem 2: Suppose the balance in inventory was $45,500 on July 1. What is the balance in inventory on July 31?