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1. Blackboard https://co 009 Cambridge Student in value: 21.00 points Aug. 1 Purchased merchandise from Abilene Company for $7,400 under credit terms of 1/10, 1/30,

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1. Blackboard https://co 009 Cambridge Student in value: 21.00 points Aug. 1 Purchased merchandise from Abilene Company for $7,400 under credit terms of 1/10, 1/30, FOB destination, invoice dated August 1. 4 At Abilene's request, Stone paid $190 cash for freight charges on the August 1 purchase, reducing the amount owed to Abilene. 5 Sold merchandise to Lux Corp. for $5,180 under credit terms of 2/10, 1/60, FOB destination, invoice dated August 5. The merchandise had cost $3,699. 8 Purchased merchandise from Welch Corporation for $6,700 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Stone's request, Welch paid the $240 shipping charges and added that amount to the bill.(Hint. Discounts are not applied to freight and shipping charges.) 9 Paid $260 cash for shipping charges related to the August 5 sale to Lux Corp. 10 Lux retumed merchandise from the August 5 sale that had cost Stone $616 and been sold for $863. The merchandise was restored to inventory. 12 After negotiations with Welch Corporation concering problems with the merchandise purchased on August 8, Stone received a credit memorandum from Welch granting a price reduction of $1,012. 15 Received balance due from Lux Corp. for the August 5 sale less the retum on August 10. 18 Paid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted. 19 Sold merchandise to Trax Co. for $4,440 under credit terms of 1/10, 1/30, FOB shipping point, invoice dated August 19. The merchandise had cost $3,081. 22 Trax requested a price reduction on the August 19 sale because the merchandise did not meet specifications Stone sent Trax a $740 credit memorandum to resolve the issue. 29 Received Trax's cash payment for the amount due from the August 19 sale. 30 Paid Abilene Company the amount due from the August 1 purchase. Prepare journal entries to record the above merchandising transactions of Stone Company, which applies the perpetual inventory system. (Identify each receivable and payable: for example, record the purchase on August 1 in Accounts Payable Abilene.) (Round your answer to nearest dollar amount. Omit the "S" sign in your response.) Date General Journal Debe Credit Aug 1 Merchandise Inventory M 7400

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