RSG Co.

distributes suitcases to retail stores and extends credit terms of 1/10, n/30 to all of its custome
suitcases costing $1,200. During the month of July, the following merchandising transactions occured.
Purchased suitcases on account for $1,500 from Trunk Manufacturers, FOB destination, terms 2
1-Jul also made a cash payment of $100 for freight on this date.
3-Jul Sold suitcases on account to Satchel World for $2,200. The cost of suitcases sold is $1,400.
9-Jul Paid Trunk Manufacturers in full
12-Jul Received Payment in full from Satchel World
P5-1A 17-Jul Sold suitcases on account to Lady GoGo for $1,400. The cost of the suitcases sold was $1,010.
18-Jul Purchased suitcases on account for $1,900 from Holiday Manufacturers, FOB shipping point, ter
party also made cash payment of $125 for freight on this date.
20-Jul Received $300 credit (including freight) for suitcases returned to holiday Manufacturers.
21-Jul Received Payment in full from Lady GoGo
22-Jul Sold suitcases on account to Vagabond for $2,250. The cost of suitcases sold was $1,350.
30-Jul Paid Holiday Manufacturers in full
31-Jul Granted Vagabond $200 credit for suitcases returned costing $120

COA
101 Cash
112 Accounts Receivable
120 Inventory
201 Accounts Payable
401 Sales Revenue
412 Sales Return and allowances
414 Sales Discounts
505 Cost of Goods Sold

Date Reff. Account Titles Dr. Cr

1-Jul

3-Jul

9-Jul

12-Jul
17-Jul

18-Jul

20-Jul

21-Jul

22-Jul

30-Jul

31-Jul
0, n/30 to all of its customer. At the end of June, RSG's inventory consisted of
ing transactions occured.
rs, FOB destination, terms 2/10, n/30. The appropriate party

itcases sold is $1,400.

uitcases sold was $1,010.

ers, FOB shipping point, terms 1/10, n/30. The appropriate

iday Manufacturers.

ses sold was $1,350.

General Ledger Reff. Dr. Cr. RSG Co.

Cash 101 Income Statement
31-Jul-20
Sales Revenues
Totals Sales Revenue
Less:Sales Return and allowances
Accounts Receivable 112 Sales Discounts
Net sales
Cost of Goods Sold
Totals Gross Profit
Operating Expenses
Inventory 120 Income from operations
Other income and expense
Net Income
 Totals

Accounts Payable 201

Totals

Sales Revenue 401

Totals

Sales Return and allowances 412

Totals

Sales Discounts 414

Totals

Cost of Goods Sold 505

Totals
 RSG Co.
Income Statement
31-Jul-20

urn and allowances