Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Kim, Inc, during the month of June June 21 Sold and shipped on account to Lowery Company 54.000 (52,000 cost of merchandise, with terms of 2/10, 1/30 28 Lowery Company returned defective merchandise bed at $400 on June 21 3.200 cost) 30 Received from Lowery Companya check for full settlement of the June 21 transaction. Required Prepare the necessary journal entries for (a) Kim, Inc., and (b) Lowery Company. Both companies use the perpetual inventory system. KIM, INC. GENERAL JOURNAL Description Debit Credit Date June 21 Sold merchandise to Lowery Company terms 2/10 30 Cost of merchandise sold to Lowery Company OOO OO OOOOOO Merchandise returned by Lowery Company Cost of merchandise returned by Lowery Company Sales Discounts Received amount due from Lowery Company LOWERY COMPANY GENERAL JOURNAL Description Date June 21 Debit Credit Purchased merchandise from Kim, Inc.; terms 2/10, n/30. Returned merchandise to Kim, Inc. 30 Cash Paid amount due to Kim Inc. Check Previous Save Answers turn Policy. User Guide | Browser Support