5-3B Journal entries for merchandising activitiesperpetual LO3 "Amuse Me Co. buys and sells new and used equipment for amusement parks, carnivals, parks, and zoos. Prepare general journal entries to record the following perpetual system merchandising transactions of Amuse Me Co. Use a separate account for each receivable and payable; for example, record the purchase on July 3 in Accounts PayableCMP Corp. July 3 Purchased bumper cars from CMP Corp. for $32,000 under credit terms of 1/10, n/30, FOB destination. 4 At CMPs request, paid $1,500 for freight charges on the July 3 purchase, reducing the amount owed to CMP. 7 Sold cotton candy machines to West Coast Zoo for $21,000 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $17,500. 10 Purchased snow cone machines from Cimarron Corporation for $29,300 under credit terms of 1/10, n/45, FOB shipping point. 11 Paid $1,200 shipping charges related to the July 7 sale to West Coast Zoo. 12 West Coast Zoo returned merchandise from the July 7 sale that had cost $2,500 and been sold for $3,500. The merchandise was restored to inventory. 14 After negotiations with Cimarron Corporation concerning problems with the merchandise purchased on July 10, received a credit memo from Cimarron granting a price reduction of $4,100. 17 Received balance due from West Coast Zoo. for the July 7 sale. 18 Sold for cash a piece of vacant land for its original cost of $62,000. 19 Purchased a used van for the business, $28,000; paid cash of $10,000 and borrowed the balance from the bank. 20 Paid the amount due Cimarron Corporation for the July 10 purchase. 21 Sold a climbing wall to Canadian National Exhibition for $18,000 under credit terms of 1/10, n/30, FOB shipping point. The merchandise had cost $13,100. 24 Canadian National Exhibition requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Sent Canadian National Exhibition a credit memo for $3,000 to resolve the issue. 31 Received Canadian National Exhibitions payment of the amount due from the July 21 purchase. 31 Paid CMP Corp. the amount due from the July 3 purchase