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, $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. Seller's Journal Entries Buyer's Journal Entries Date KIM, INC. GENERAL JOURNAL Description Debit Credit 0 June 21 Accounts Receivable Sales Revenue Sold merchandise to Lowery Company terms 2/10, n/30, 21 0 Cost of merchandise sold to Lowery Company 28 0 Merchandise returned by Lowery Company 28 28 0 Cost of merchandise returned by Lowery Company 30 Sales Discounts Received amount due from Lowery Company 0 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, $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. Seller's Journal Entries Buyer's Journal Entries LOWERY COMPANY GENERAL JOURNAL Description Debit Credit Date June 21 Purchased merchandise from Kim, Inc; terms 2/10, n/30 28 0 30 Returned merchandise to Kim, Inc. Cash Paid amount due to Kim Inc. 0