Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Lamont, Inc., during the month of June June 21 Sold and shipped on account to Lowery Company. $3,000 (52.000 cost) of merchandise, with terms of 2/10, n/30. 28 Lowery Company returned defective merchandise billed at $300 on June 21 (5210 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. LAMONT, INC. GENERAL JOURNAL Date Description Debit Credit June 21 Accounts Receivable 3,000 Sales Revenue 3,000 Sold merchandise to Lowery Company terms 2/10, n/30. 21 Cost of Goods Sold 2,000 Inventory 2,000 Cost of merchandise sold to Lowery Company 28 Sales Returns and Allowances+ 300 Accounts Receivable 300 Merchandise returned by Lowery Company 28 Inventory 210 Cost of Goods Sold 210 Cost of merchandise returned by Lowery Company