1. Journalize the following transactions, which uses a Perpetual Inventory System and uses the gross method to record sales and purchases:

Aug 1	Purchase merchandise on credit for $5,000, terms 3/10, n/30.
3	Purchased merchandise for cash, $2,720.
4	Received a credit memorandum from the seller for the return of faulty merchandise purchased on August 1 for $600.
6	Sold merchandise on credit for $2,600, terms 1/20, n/30. The items sold had a cost of $1,750
9	Issued a credit memorandum for $300 to a customer who returned merchandise purchased Aug 6. The returned items had a cost of $210.
10	Made payment for merchandise purchased August 1, less the portion that was returned.
18	Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point)
23	Received payment for merchandise sold on Aug 6, less the return.
24	Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900.
31	Received payment for merchandise sold on August 24.

Date	Description	PR	DEBIT	CREDIT