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GL0502-Based on Problem 5-2A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lane's, which uses the perpetual inventory system. Hint

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GL0502-Based on Problem 5-2A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Lane's, which uses the perpetual inventory system. Hint It will help to identify each receivable and payable, for example, record the purchase on August 1 in Accounts Payable-Carter. Aug 1 Purchased merchandise from Carter Company for $5,500 under credit terms of 1/10, 1/30, FOB destination invoice dated August 1. 5 Sold merchandise to Thompson Corp. for 95,700 under Credit terms of 2/10, 1/60, OS deatination, invoice dated August 5. The merchandise had cost $3,100. Aug. Purchased merchandise from Derry Corporation for $5,600 under credit to 1/101/45, FOB whipping point, Invoice dated August 0. 9 Paid 5325 cash for shipping charges related to the August 5 sale to Thompson Corp. Aug. 10 Thompson returned merchandise from the August S sale that had cont Lanet, 5100 and was sold tot 5200. The merchandise was restored to inventory Aug. 12 Atter negotiations with Perry Corporation concerning problem with the purchase on August 1, Lanas received a ice teduction from Perty of $700 off the 55,600 of goods purchased. Lanests debited accounts payable for ST00. Aug. 14 At Carter request. Lane's paid $700 cash for freight charges on the August 1 purchase, reducing the amount bund (accounts payable) to Cartet. Aug. 15 Neces ved balance due toon Thompson Corp. for the August 5 sale Jeong the return on August 10. Aug in Paid the anount doe Berry Corporation for the Aucunt 8 purchase less the price allowance from August 12. w 10 sold serchandise to Mitchell co for $3,900 under rede terms of 1/10, FOB shipping point, invoice dated August 13. The merchandise had cost $1.950 Aug 22 Mitchell Tequested price Leduction on the August 19 sale because the merchandise did not et mentication. Les gave a proe reduction allowance) 0 400 Kitchell, and credited itchells Scots receivable for that mount Aug. 29 Received Mitchell's cash payment for the amount due trom the August 19 sale lose the price and from August 22 Aug. 30 Paid Carter Company the amount due from the August 1 purchase

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