Journal Entries for Merchandise Transactions on Sellers and Buyers BooksPerpetual System

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

June	21	Sold and shipped on account to Lowery Company, $4,000 ($2,000 cost) of merchandise, with terms of 2/10, n/30.
	28	Lowery Company returned defective merchandise billed at $400 on June 21 ($200 cost.)
	30	Received from Lowery Company a 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.

a.

KIM, INC. GENERAL JOURNAL
Date		Description	Debit	Credit
June	21		Answer	Answer
			Answer	Answer
		Sold merchandise to Lowery Company terms 2/10, n/30.
	21		Answer	Answer
			Answer	Answer
		Cost of merchandise sold to Lowery Company.
	28		Answer	Answer
			Answer	Answer
		Merchandise returned by Lowery Company.
	28		Answer	Answer
			Answer	Answer
		Cost of merchandise returned by Lowery Company.
	30		Answer	Answer
		Sales Discounts	Answer	Answer
			Answer	Answer
		Received amount due from Lowery Company.

b.

LOWERY COMPANY GENERAL JOURNAL
Date		Description	Debit	Credit
June	21		Answer	Answer
			Answer	Answer
		Purchased merchandise from Kim, Inc.; terms 2/10, n/30.
	28		Answer	Answer
			Answer	Answer
		Returned merchandise to Kim, Inc.
	30		Answer	Answer
			Answer	Answer
		Cash	Answer	Answer
		Paid amount due to Kim Inc.

Please answer all parts of the question.