Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System

The following are selected transactions for Lamont, Inc., during the month of June:

June	21	Sold and shipped on account to Lowery Company, $5,880 ($5,000 cost) of merchandise, with terms of 2/10, n/30.
	28	Lowery Company returned defective merchandise billed at $580 on June 21 ($510 cost.)
	30	Received from Lowery Company a check for full settlement of the June 21 transaction.

Required Prepare the necessary journal entries for (a) Lamont, Inc., and (b) Lowery Company. Both companies use the perpetual inventory system. a.

LAMONT, INC. GENERAL JOURNAL
Date		Description	Debit	Credit
June	21	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Sold merchandise to Lowery Company terms 2/10, n/30.
	21	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of merchandise sold to Lowery Company.
	28	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		AnswerAccounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Merchandise returned by Lowery Company.
	28	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cost of merchandise returned by Lowery Company.
	30	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Sales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Received amount due from Lowery Company.

b.

LOWERY COMPANY GENERAL JOURNAL
Date		Description	Debit	Credit
June	21	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Purchased merchandise from Lamont, Inc.; terms 2/10, n/30.
	28	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Returned merchandise to Lamont, Inc.
	30	Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Answer: Accounts payableAccounts ReceivableCashCost of Goods SoldInventorySales RevenueSales Returns and AllowancesSales Discounts	Answer	Answer
		Cash	Answer	Answer
		Paid amount due to Lamont, Inc.