Prepare journal entries to record the following merchandising transactions of Walker's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Mitchel.) August 1 Purchased merchandise from Mitchell Company for $8,700 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1.. August 5 Sold merchandise to Zhang Corporation for $5,800 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,500. August 8 Purchased merchandise from Thompson Corporation for $5,640 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8.1 August 9 Paid $525 cash for shipping charges related to the August 5 sale to Zhang Corporation August 10 Zhang returned merchandise from the August 5 sale that had cost Walker's $200 and was sold for $300. The merchandise was restored to inventory. August 12 After negotiations with Thompson Corporation concerning problems with the purchases on August 8, Walker's received a credit memorandum from Thompson granting a price reduction of $700 off the $5,640 of goods purchased. August 14 At Mitchel's request, Walker's paid $300 cash for freight charges on the August 1 purchase, reducing the amount owed to Mitchel. August 15 Received balance due from Zhang Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Thompson Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Knight Company for $3,900 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $1,950. August 22 Knight requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Walker's sent Knight a $400 credit memorandum toward the $3,900 invoice to resolve the issue. August 29 Received Knight's cash payment for the amount due from the August 19 sale less the price allowance from August August 30 Paid Mitchel Company the amount due from the August 1 purchase. 22. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Journalize the merchandising transactions. The General Ledger, trial balance, and schedules of accounts receivable and accounts payable will be updated based on your entries