prepare journal entries to record the following merchandising transactions of Stone Company, which applies the perpetual inventory system. Aug. 1 Purchased merchandise from Abilene Company for $6,000 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Aug. 4 At Abilene's request, Stone paid $100 cash for freight charges on the August 1 purchase, reducing the amount owed to Abilene. Aug. 5 Sold merchandise to Lux Corp. for $4,200 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5 . The merchandise had cost $3,000. Aug. 8 Purchased merchandise from Welch Corporation for $5,300 under credit terms of 1/10,n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Stone's request , Welch paid the $240 shipping charges and added the amount to the bill.(Hint: Discounts are not applied to freight and shipping charges) Aug. 9 Paid $120 cash for shipping charges related to the August 5 sale to Lux Corp. Aug. 10 Lux returned merchandise from the August 5 sale that had cost Stone $500 and been sold for $700. The merchandise was restored to inventory. Aug. 12 After negotiations with Welch Corporation concerning problems with the merchandise purchased on August 8, Stone received a credit memorandum from Welch granting a price reduction of $800. Aug. 15 Received balance due from Lux Corp. for the August 5 sale less the return on August 10. Aug. 18 Paid the amount due Welch Corporation for the August 8 purchase less the price reduction granted. Aug 19 Sold merchandise to Trax Co. for $3,600 under credit terms of 1/10, n/30,FOB shipping point, invoice dated August 19. The merchandise had cost $2,500. Aug 22. Trax requested a price reduction on the August 19 sale because the mechandise did not meet specifications. Stone sent Trax a $600 credit memorandum to resolve the issue. Aug 29. Received Trax's cash payment for the amount due from the August 19 sale. Aug 30. Paid Abilene Company the amount due from the August 1 purchase