This is all the information given:

1. Record the transactions for the month of July for Sarasota Warehouse.

2. Create a T account for Merchandise Inventory. Post the opening balance and Julys transactions, and calculate the July 31 balance.

3. Determine the number of suitcases on hand at the end of the month by calculating the average cost per suitcase of the inventory on hand.

Sarasota Warehouse distributes suitcases to retail stores and extends credit terms of n/30 to all of its customers. Sarasota Warehouse uses a perpetual inventory system and at the end of June its inventory consisted of 35 suitcases purchased at $30 each. During the month of July, the following merchandising transactions occurred: July 1 Purchased 50 suitcases on account for $30 each from Trunk Manufacturers, terms n/30, FOB destination. 2 The correct company paid $125 freight on the July 1 purchase. 4 Received $150 credit for five suitcases returned to Trunk Manufacturers because they were damaged. 10 Sold 45 suitcases that cost $30 each to Satchel World for $75 each on account. 12 Issued a $375 credit for five suitcases returned by Satchel World because they were the wrong colour. The suitcases were returned to inventory. 15 Purchased 60 additional suitcases from Trunk Manufacturers for $26.50 each, terms n/30, FOB shipping point. 18 The company paid $150 freight on the July 15 purchase. 21 Sold 40 suitcases that cost $30 each to Fly-By-Night for $75 each on account. 23 Gave Fly-By-Night a $150 credit for two returned suitcases. The suitcases had been damaged and were sent to the recyclers. 30 Paid Trunk Manufacturers for the July 1 purchase. 31 Received balance owing from Satchel World