Prepare journal entries to record the following merchandising transactions of Parker'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-Perez.) August 1 Purchased merchandise from Perez Company for $12,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Sanchez Corporation for $7,500 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,500. August 8 Purchased merchandise from Allen Corporation for $6,320 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $725 cash for shipping charges related to the August 5 sale to Sanchez Corporation August 10 Sanchez returned merchandise from the August 5 sale that had cost Parker's $200 and was sold for $400. The merchandise was restored to inventory. August 12 After negotiations with Allen Corporation concerning problems with the purchases on August 8, Parker's received a credit memorandum from Allen granting a price reduction of $900 off the $6,320 of goods purchased. August 14 At Perez's request, Parker's paid $500 cash for freight charges on the August 1 purchase, reducing the amount owed to Perez. August 15 Received balance due from Sanchez Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Allen Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Lee Company for $4,300 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,150. August 22 Lee requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Parker's sent Lee a $500 credit memorandum toward the $4,300 invoice to resolve the issue. August 29 Received Lee's cash payment for the amount due from the August 19 sale less the price allowance from August August 30 Paid Perez 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. View transaction list Journal entry worksheet > 1 2 3 4 5 6 7 8 16 Purchased merchandise from Perez Company for $12,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits.