a.

Date Explanation Debit Credit

1 Merchandise Inventory 48,440
Cash 1,400
Accounts Payable 47,040
Purchase on account with
terms of n/10

3 Accounts Receivable 62,000

Sales 62,000
Sold on account with terms of
1/10,n/30

Cost of Goods Sold 32,000

Merchandise Inventory 32,000

9 Accounts Payable 48,440

Cash 48,440
Paid the account to Bagsy

12 Cash 61,380
Sales Discount 620
Accounts Receivable 62,000
Received payment from Metro
World

17 Accounts Receivable 46,500

Sales 46,500
Sold on account with terms of
1/10,n/30

Cost of Goods Sold 24,220

Merchandise Inventory 24,220

18 Merchandise Inventory 60,000

Cash 9000
Accounts Payable 51,000
Purchase on account with
terms of 1/10, n/30

20 Accounts Payable 8,500

 Merchandise Inventory 8,500
Received credit from
Kingsmen

21 Cash 46,035
Sales Discount 465
Accounts Receivable 46,500
Received payment from Going
and Coming

22 Accounts Receivable 93,000

Sales 93,000
Sold on account with terms of
1/10,n/30

Cost of Goods Sold 49,500

Merchandise Inventory 49,500

29 Accounts Payable 42,500

Cash 42,500
Paid the account to Kingsmen

30 Sales Returns and Allowance 500

Accounts Receivable 500

Totals 624100 624100

Item: Travelling bags
Case no. 27

Received Issued Balance

2021 Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost

1-Jul 70 800 56,000

Jul-03 40 800 32,000 30 800 24,000
Jul-22 30 800 24,000 0 800 0

Item: Travelling bags

Code no. 28
Received Issued Balance
2021 Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost

Jul-01 60 807.3333 48,440 60 807.333333 48,440

Jul-17 30 807.33 24,220 30 807.33 24,220

Item: Travelling bags

Code no. 29
Received Issued Balance
2021 Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost Qty. Unit Cost Total Cost
Jul-18 60 850 51,000 60 850 51,000
Jul-20 10 850 8,500 50 850 42,500
Jul-22 30 850 25,500 20 850 17,000

b. yes there were 50 unsold stocks

Code 28 24,220
Code 29 17000
Total 41,220
 Merchandise Inventory
Jul-01 48,440 32,000 Jul-03

Jul-18 51,000 24,220 Jul-17

8,500 Jul-20

49,500 Jul-22
99,440 114,220
14,780
Cost of Goods Sold
Jul-03 32,000
Jul-17 24,220
Jul-22 49,500

105,720

d. Sales Revenue 62,000

46,500
93,000 201,500
COGS 105,720
Gross Profit 95,780

Sales 201,500

Less: Sales Returns and Allowances 500

Net Sales 201,000

Purchases 99,440

Less: Purchases Returns and Allowances 8,500

Purchases Discounts 0
Net Purchases 90,940
Add: Freight-In 9,000
Total Goods Available for Sale 99,940

Gross Profit 101,060

 Sales
Code 27 108500

Code 28 46500

Code 29 46500

Total 199915