C 5 mts eBook Ask Print eferences Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system August 1 Purchased merchandise from Clinton Company for 59,500 under credit terms of 1/10, n/30, roo destination. invoice dated August 1. August 5 Sold merchandise to Gonzalez Corporation for $6,200 under credit terms of 2/10, n/40, FOB destination, invoice dated August 5. The merchandise had cost $3,700. August 8 Purchased merchandise from Clark Corporation for $5,000 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $525 cash for shipping charges related to the August 5 sale to Conzales Corporation August 10 Gonzalez returned merchandise from the August 5 sale that had cost Lee's $200 and was sold for $300. The merchandise was restored to inventory. August 12 After negotiations with Clark Corporation concerning problems with the purchases on August 8, Lee's received credit memorandum from Clark granting a price reduction of $700 off the $5,800 of goods purchased. August 14 At Clinton's request, Lee's paid $700 cash for freight charges on the August 1 purchase, reducing the amount owed to Clinton. August 15 Received balance due from Gonzalez Corporation for the August 5 sale lean the return on August 10. August 18 Paid the amount due Clark Corporation for the August 8 purchase less the price allowance fron August 12.1 August 19 Sold merchandise to Ryan Company for $4,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,000. August 22 Ryan requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lee's sent Ryan a $400 credit menorandum toward the $4,000 invoice to resolve the issue. August 29 Received Ryan's cash payment for the amount due from the August 19 sale less the price allowance from Augus 22. August 30 Paid Clinton Company the amount due from the August 1 purchase.