The Digit-All Company sells a product called ReCord for $15 each and uses a perpetual inventory system to account for its merchandise. The beginning balance of ReCords and transactions during July 2014 were as follows:
July 1 Balance: 30 units costing $6 each.
4 Purchased from Tulsco Supply 45 units costing $5 each.
9 Sold to W. Tilden 10 units, invoice #21 3.
15 Sold to J. Samuelson 25 units, invoice #214
18 Purchased from Gentry Holdings 30 units costing $4.50 each.
22 Sold to V. Nels 20 units, invoice #215.
30 Sold to M. Bains 27 units, invoice #216.
Required
Journalize the July transactions in the Sales Journal and Purchases Journal. Use page 1 for each journal. Assume all sales and purchases are on credit; terms n/30. Under the assumption that the company keeps its records on a weighted average basis, you will need to enter the beginning balances and post each transaction on an Inventory Sub ledger record like the one illustrated in Exhibit 7.6 in order to determine cost of goods sold.