Prepare journal entries to record the following merchandising transactions of Brown's, which uses the perpetual inventory system. (Hint: It will help to identify each recelvable and payable; for example, record the purchase on August 1 in Accounts Payable-Griffin.) August 1 Purchased merehandise fron Gritfin Conpany for $7,700 under eredit terme of 1/10,n/30, rob destination, August 5 sold merchandise to clinton Corporation for $5,300 under oredit terms of 2/10,n/60,508 destination, involce dated August 5. The morehandine had cost $3,200. Auguet 8 Purchased merehandise from Parker Corporation for $5,440 under eredit termb of 1/10,n/45, goB ahipping point, invoice dated August 8. Auguat 9 Paid $325 cash for shipping chargen related to the Auguat 5 sale to clinton Corporation Auguat 10 cinton returned norchandise from the August 5 sale that had cost Brown' $100 and was sold for $200. The merchandise was restored to inventory. August 12 After negotiations with Parker Corporation concerning problems with the purchased on Auguat 8, Brown' I received a credit menorandum fron parker granting a price reduetion of $600 off the $5,440 of goods purchased. August 14 At Griffin's request, Brown's pald $300 cash for freight charges on the August 1 purchase, reducing the anount Auguat 15 Recelved balance due trom clinton Corporation for the Mugunt 5 ale leas the roturn on Auguat 10 . August 18 Paid the arount due Parker Corporation for the August 8 purchase less the price allowance from August 12 . Augunt 19 sold merchandise to Allen company for $3,800 under eredit terme of n/10, rol shipping point, involce dated August 19. The nerchandise had coat $1,900. August 22 Allen requested a price reduction on the August 19 sale because the merchandine did not meet speciflcations. Brown' I sent Allen a $400 oredit monorandun toward the $3,800 involce to resolve the issue. Auguat 29 Received Allen's eash payment for the anount due from the Auquat 19 ale less the price allowance from Auguat 22. August 30 Paid Griffin Company the anount due fron the Auguat 1 purehane. Journalize the merchandising transactions. payable will be updated based on your entries. Journal entry worksheet Purchased merchandise from Griffin Company for $7,700 under credit terms of 1/10,n/30,FOB destination, invoice dated August 1. Note: Enter debits before credits. lournalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts ry payable will be updated based on your entries. Journal entry worksheet Sold merchandise to Clinton Corporation for $5,300 under credit terms of 2/10,n/60,FOB destination, invoice dated August 5. Note: Enter debits before credits. Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receival payable will be updated based on your entries. Journal entry worksheet Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts recelvable and accou payable will be updated based on your entries. Journal entry worksheet Purchased merchandise from Parker Corporation for $5,440 under credit terms of 1/10,n/45,FOB shipping point, invoice dated August 8. Note: Enter debits before credits. Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable an payable will be updated based on your entries. Journal entry worksheet Paid $325 cash for shipping charges related to the August 5 sale to Clinton Corporation Note: Enter debits before credits. Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries. Journal entry worksheet Clinton returned merchandise from the August 5 sale that had sold for $200. Note: Enter debits before credits
