1 GLO401 - Based on Problem 4-1A LO P1, P2 15 points Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Clark.) eBook Jul. 1 Purchased merchandise from Clark Company for $8,000 under credit terms of 1/15, n/38, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Clinton Co. for $1,980 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,140. Jul. 3 Paid $525 cash for freight charges on the purchase of July 1. Jul. 8 Sold merchandise that had cost $2,200 for $3,700 cash. Jul. 9 Purchased merchandise from Griffin Co. for $3,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. Jul. 11 Returned $600 of merchandise purchased on July 9 from Griffin Co. and debited its account payable for that amount. Jul. 12 Received the balance due from Clinton Co. for the invoice dated July 2, net of the discount. Jul. 16 Paid the balance due to Clark Company within the discount period. Jul. 19 Sold merchandise that cost $2,200 to Knight Co. for $3,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. Jul. 21 Gave a price reduction (allowance) of $600 to Knight Co. for merchandise sold on July 19 and credited Knight's accounts receivable for that amount. Jul. 24 Paid Griffin Co. the balance due, net of discount. Jul. 30 Received the balance due from Knight Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $5,400 to Clinton Co. for $9,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31. Print References Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. View transaction list View journal entry worksheet No Date Account Title Debit Credit 1 Jul 01 8,000 Merchandise inventory Accounts payable - Clark 8,000