PR 5-1 - Purchase related transactions - Old Towne Co. Instructions: Journalize the following selected transactions that were completed by Old Towne Co. during August of the current year. (Keep track of how much the company owes each creditor.) 201 Aug. 1 Purchased merchandise from Palmer Co., $35,000, terms FOB shipping point, n/30. Prepaid freight of $500 was added to the invoice. 2 Purchased merchandise from Alleghany Productions, $12,600, terms FOB destination, 2/10,n/30. 8 Purchased merchandise from Halifax, Inc., $42,000, terms fOB destination, n/30. 11 Paid Alleghany for invoice of August 2 , less discount. 13 Received an allowance for $5,000 from Halifax, Inc, for merchandise that was not as expected, but saleable. 30 Paid Paimer Co. for invoice of August 1. 31 Paid Halifax, Inc. for invoice dated August 8, less allowance granted on August 13