2-Journal entries for merchandising activities Bright Stars Company is a merchandiser that used the perpetual inventory system and records purchases using the gross method, Prepare journal entries for the following transactions for Bright Start. Use a separate account for each receivable and payable; for example, record the purchase July 1 in Accounts Payable-Jells Bells Company. Do the analysis component Ju 1 Purchased merchandise from Jells Bells Company for $15,800 under credit terms of 3/15, n/30, FOB ly shipping point. 2 Sold merchandise to TLO Co. for $3,100 under credit terms of 1/10, n/60, FOB shipping point. The merchandise had cost $2,450. 3 Paid $550 for freight charges on the purchase of July 1. 8 Sold merchandise that cost $4,325 for $5,600 cash. 9 Purchased merchandise from Kritter Co. for $8,600 under credit terms of 1/15, n/60, FOB destination 1 Received a $2,000 credit memo acknowledging the return of merchandise purchased on July 9. 2 1 Received the balance due from TLO Co. for the credit sale dated July 2 2 1 Purchased office supplies from Eddie's Office Supplies on credit, $860, n/30. 3 1 Paid the balance due to Jells Bells Company. 6 1 Sold merchandise that cost $3,350 to Usher Co. for $4,300 under credit terms of 1/15, n/60, FOB 9 shipping point. 2 Issued a $400 credit memo to Usher Co, for an allowance on goods sold on July 19. 1 2 Paid Kritter Co. the balance due. 9 3 Received the balance due from Usher Co. for the credit sale dated July 19. 0 3 Sold merchandise that cost 58,500 to TLO Co. for $11,000 under credit terms of 1/10, n/60, FOB 1 shipping point