GL0401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Sanchez'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-Lee.) July 1 Purchased merchandise from Lee Company for $4,400 under credit terms of 1/35, 1/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Brown Company for $2,600 under credit terms of 2/10, 1/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,56e. July 3 Paid $899 cash for freight charges on the purchase of July 1. July & Sold merchandise that had cost $3,100 for $5,190 cash. July 9 Purchased merchandise from Carter Company for $3,900 under credit terns of 2/15, 1/60, FOB destination, Invoice dated July 9. July 11 Returned $100 of merchandise purchased on July 9 fron Carter Company and debited to account payable for that amount July 12 Received the balance due from Brown Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Lee Company within the discount period. July 19 Sold merchandise that cost $3,200 to Clark Company for $4,600 under credit terns of 2/15, 1/60) FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $900 to Clark Company for merchandise told on July 19 and credited Clark's accounts receivable for that amount. July 24 Paid Carter Company the balance due, net of discount. July 30 Received the balance due from Clark Company for the invoice dated July 19, net of discount July 31 Sold merchandise that cost $6,200 to Brown Company for $10,400 under credit terms of 2/10, 1/00, FOB shipping point, invoice dated July 31