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.
5 Purchased 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.
12 Purchased 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.
31 Paid for the store supplies purchased on July 5.
Required
1. Journalize the preceding transactions on the books of Coburn Furniture Company. The company uses the perpetual inventory system.
2. Suppose the balance in inventory was $45,500 on July 1. What is the balance in inventory on July 31?