Lee Furniture Company engaged in the following transactions in August:

Aug. 4 Purchased merchandise on account at a cost of $140,000; terms 2/10, n/30, FOB shipping point.

6 Paid freight of $2,000 on the purchase of August 4.

12 Returned $24,000 of the merchandise purchased on August 4.

14 Paid the amount due on the purchase of August 4.

1. Prepare journal entries for the transactions of Lee Furniture (the BUYER).

2. Prepare the journal entries that would be made for the SELLER. The cost of the goods to the seller was $84,000 and the cost of the returned inventory was $14,400.

GENERAL JOURNAL Date Account Titles and Explanation P. R. Debit Credit