Prepare journal entries to record the following merchandising transactions of Allen's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts PayablePerez.)

Jul.		1		Purchased merchandise from Perez Company for $9,200 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1.
Jul.		2		Sold merchandise to Cabela Co. for $2,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,500.
Jul.		3		Paid $765 cash for freight charges on the purchase of July 1.
Jul.		8		Sold merchandise that had cost $2,900 for $4,900 cash.
Jul.		9		Purchased merchandise from Wright Co. for $3,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.
Jul.		11		Returned $800 of merchandise purchased on July 9 from Wright Co. and debited its account payable for that amount.
Jul.		12		Received the balance due from Cabela Co. for the invoice dated July 2, net of the discount.
Jul.		16		Paid the balance due to Perez Company within the discount period.
Jul.		19		Sold merchandise that cost $3,100 to Lee Co. for $4,400 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.
Jul.		21		Gave a price reduction (allowance) of $900 to Lee Co. for merchandise sold on July 19 and credited Lees accounts receivable for that amount.
Jul.		24		Paid Wright Co. the balance due, net of discount.
Jul.		30		Received the balance due from Lee Co. for the invoice dated July 19, net of discount.
Jul.		31		Sold merchandise that cost $6,100 to Cabela Co. for $10,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.