July 1 Purchased merchandise from Clark Company for $8,000 under credit terms of 1 15, n 30, FOB shipping point, invoice dated July 1 July 2 Sold merchandise to Clinton Company for $1,900 under credit terms of 2 10, n 60, FOB shipping point, invoice dated July 2 The merchandise had cost $1,140 July 3 Paid $525 cash for freight charges on the purchase of July 1 July 8 Sold merchandise that had cost $2,200 for $3,700 cash July 9 Purchased merchandise from Griffin Company for $3,200 under credit terms of 2 15, n 60, FOB destination, invoice dated July 9 July 11 Returned $600 of merchandise purchased on July 9 from Griffin Company and debited its account payable for that amount July 12 Received the balance due from Clinton Company for the invoice dated July 2, net of the discount July 16 Paid the balance due to Clark Company within the discount period July 19 Sold merchandise that cost $2,200 to Knight Company for $3,200 under credit terms of 2 15, n 60, FOB shipping point, invoice dated July 19 July 21 Gave a price reduction (allowance) of $600 to Knight Company for merchandise sold on July 19 and credited Knights accounts receivable for that amount July 24 Paid Griffin Company the balance due, net of discount July 30 Received the balance due from Knight Company for the invoice dated July 19, net of discount July 31 Sold merchandise that cost $5,400 to Clinton Company for $9,000 under credit terms of 2 10, n 60, FOB shipping point, invoice dated July 31 Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system and the gross method (Hint It will help to identify each receivable and payable for example, record the purchase on July 1 in Accounts PayableClark )

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July 1 Purchased merchandise from Clark Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold

July 1	Purchased merchandise from Clark Company for $8,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.
July 2	Sold merchandise to Clinton Company for $1,900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,140.
July 3	Paid $525 cash for freight charges on the purchase of July 1.
July 8	Sold merchandise that had cost $2,200 for $3,700 cash.
July 9	Purchased merchandise from Griffin Company for $3,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
July 11	Returned $600 of merchandise purchased on July 9 from Griffin Company and debited its account payable for that amount.
July 12	Received the balance due from Clinton Company for the invoice dated July 2, net of the discount.
July 16	Paid the balance due to Clark Company within the discount period.
July 19	Sold merchandise that cost $2,200 to Knight Company for $3,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
July 21	Gave a price reduction (allowance) of $600 to Knight Company for merchandise sold on July 19 and credited Knights accounts receivable for that amount.
July 24	Paid Griffin Company the balance due, net of discount.
July 30	Received the balance due from Knight Company for the invoice dated July 19, net of discount.
July 31	Sold merchandise that cost $5,400 to Clinton Company for $9,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts PayableClark.)