Prepare journal entries to record the following merchandising transactions of Lee'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 PayableAllen.) August 1 Purchased merchandise from Allen Company for $7,900 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Ryan Corporation for $5,400 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $3,200. August 8 Purchased merchandise from Clinton Corporation for $5,480 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 Ryan Corporation August 10 Ryan 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 Clinton Corporation concerning problems with the purchases on August 8, Lee's received a credit memorandum from Clinton granting a price reduction of $600 off the $5,480 of goods purchased. August 14 At Allen's request, Lee's paid $400 cash for freight charges on the August 1 purchase, reducing the amount owed to Allen. August 15 Received balance due from Ryan Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Clinton Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Sanchez 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 Sanchez requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Lee's sent Sanchez a $400 credit memorandum toward the $3,900 invoice to resolve the issue. August 29 Received Sanchez's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid Allen Company the amount due from the August 1 purchase.