Merchandising Journal Entries Prepare general journal entries for Arrow-A Company to record the following transactions for the month of June. June 5 Purchased $3,500 of merchandise from Arthur Company on account, terms 3/15, n/30. 7 Sold merchandise to Alea Inc., $500 cash. (The cost of this merchandise was $215.) 8 Paid for the shipping costs incurred on the June 5 purchase, $230. 9 Returned $700 of merchandise to Arthur for credit. 10 Purchased $495 of supplies on account from The Art Suppliers. 12 Sold $850 of merchandise to the Abilene County Schools on account, terms 2/10, n/30. (The cost of this merchandise was $625.) 15 Abilene County Schools returned for credit $200 of merchandise purchased on june 12. (The cost of this merchandise was $150.) 16 Paid the amount owed to Arthur, less the return and the discount. 20 Received a check from the Abilene County Schools for the amount owed from June 12, less the return and the discount. 21 Purchased merchandise from Anna Company, $1700 cash