E 141 of 369 > AP7-6 L (Appendix 7B) Recording Sales and Purchases with Cash Discounts and Returns (P7-11) LO7-S2 Aa C OFF The following transactions were selected from those occurring during the month of January of the current year for Dan's Store Ltd. A wide variety of goods is offered for sale. Credit sales are extended to a few select customers; the usual credit terms are n/EOM (end of the month). The cost of sales is always one-half of the gross sales price. a. Sales to customers: Cash, $228,000 Credit, $72,000 b. Unsatisfactory merchandise returned by customers: Cash, $3,000 Credit, $2,000 c. Purchased merchandise from vendors on credit, with terms 2/10, n/30: i. Amount billed by Amy Supply Company, $4,000 ii. Amount billed by other vendors, $68,000 d. Paid freight on merchandise purchased, $1,500 cash e. Collections on trade receivables, $36,000 f Paid accounts payable in full during the period as follows: 1 Amy Supply Company after the discount period, $4,000 ii. Paid other vendors within the discount period, $66,640 g. Paid $1,000 for two new laptop computers for the office F a. Sales to customers: Cash, $228,000 Credit, $72,000 b. Unsatisfactory merchandise returned by customers: Cash, $3,000 Credit, $2,000 c. Purchased merchandise from vendors on credit, with terms 2/10, n/30: i. Amount billed by Amy Supply Company, $4,000 ii. Amount billed by other vendors, $68,000 d. Paid freight on merchandise purchased, $1,500 cash e. Collections on trade receivables, $36,000 f. Paid accounts payable in full during the period as follows: i Amy Supply Company after the discount period, $4,000 ii. Paid other vendors within the discount period, $66,640 g. Paid $1,000 for two new laptop computers for the office Required: Prepare journal entries for these transactions, assuming that a periodic inventory system is used.