Prepare journal entries to record the following merchandising transactions of Lee's, which uses the perpetual inventory system. August 1 Purchased merchandise from Clinton Company for $9,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Gonzalez Corporation for $6,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,700. August 8 Purchased merchandise from Clark Corporation for $5,800 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $525 cash for shipping charges related to the August 5 sale to Gonzalez Corporation August 10 Gonzalez returned merchandise from the August 5 sale that had cost Lee's $200 and was sold for $300. The merchandise was restored to inventory. August 12 After negotiations with Clark Corporation concerning problems with the purchases on August 8, Lee's received a credit memorandum from Clark granting a price reduction of $700 off the $5,800 of goods purchased. August 14 At Clinton's request, Lee's paid $700 cash for freight charges on the August 1 purchase, reducing the amount owed to Clinton. August 15 Received balance due from Gonzalez Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Clark Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Ryan Company for $4,000 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,000. August 22 Ryan requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lee's sent Ryan a $400 credit memorandum toward the $4,000 invoice to resolve the issue. August 29 Received Ryan's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Clinton Company the amount due from the August 1 purchase. Requirement General Journal General Ledger Trial Balance Schedule of Schedule of Receivables Payables Income Statement Impact on Income General Journal tab - Journalize the merchandising transactions. The General Ledger, trial balance and schedules of accounts receivable and accounts payable will be updated based on your entries. General Ledger tab - One of the advantages of general ledger software is that posting is done automatically. To see the detail of all transactions that affect a specific account, or the balance in an account at a specific point in time, click on the General Ledger tab. Trial Balance tab - General ledger software also automates the preparation of trial balances. A trial balance lists each account from the General Ledger, along with its balance, either a debit or a credit. Total debits should always equal total credits. Schedule of Receivables tab - General ledger software automates the balances for each of the customers' accounts. Schedule of Payables tab - General ledger software automates the balances for each of the suppliers' accounts. Income Statement tab - Prepare a multiple-step income statement. Impact on Income tab - Indicate the impact each transaction had on net income. Requirement General Journal >