Preparing journal entries for merchandising activities— perpetual system PI P2: Prepare journal entries to record the following merchandising transactions ofYarvelle Company, which applies the perpetual inventory system. {Hint: It will help to identify each receivable and payable; for example, record the purchase on May 2 in Accounts Payable—Havel.)

May 2 Purchased merchandise from Havel Co. for $10,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated May 2.

4 Sold merchandise to Heather Co. for $11,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 4. The merchandise had cost $5,600.

5 Paid $250 cash for freight charges on the purchase of May 2.

9Sold merchandise that had cost $2,000 for $2,500 cash.

10Purchased merchandise from Duke Co. for $3,650 under credit terms of 2/15, n/60, FOB destination, invoice dated May 10.

12 Received a $400 credit memorandum from Duke Co. for the return of part of the merchandise purchased on May 10.

14 Received the balance due from Heather Co. for the invoice dated May 4, net of the discount.

17 Paid the balance due to Havel Co. within the discount period.

20 Sold merchandise that cost $1,450 to Tameron Co. for $2,800 under credit terms of 2/15, n/60, FOB shipping point, invoice dated May 20.

22 Issued a $400 credit memorandum to Tameron Co. for an allowance on goods sold from May 20.

25 Paid Duke Co. the balance due after deducting the discount.

30 Received the balance due from Tameron Co. for the invoice dated May 20, net of discount and allowance.

31 Sold merchandise that cost $3,600 to Heather Co. for $7,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated May 31.