Problem 5-1A Preparing journal entries for merchandising activities-perpetual system LO P1, P2

July1Purchased merchandise from Boden Company for $6,100 under credit terms of 2/15, n/30, FOB shipping point, invoice dated July 1.

2Sold merchandise to Creek Co. for $1,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $508.

3Paid $120 cash for freight charges on the purchase of July 1.

8Sold merchandise that had cost $1,400 for $1,800 cash.9Purchased merchandise from Leight Co. for $2,700 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9.

11Received a $700 credit memorandum from Leight Co. for the return of part of the merchandise purchased on July 9.

12Received the balance due from Creek Co. for the invoice dated July 2, net of the discount.

16Paid the balance due to Boden Company within the discount period.

19Sold merchandise that cost $1,000 to Art Co. for $1,500 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19.

21Issued a $250 credit memorandum to Art Co. for an allowance on goods sold on July 19.

24Paid Leight Co. the balance due after deducting the discount.

30Received the balance due from Art Co. for the invoice dated July 19, net of discount.

31Sold merchandise that cost $4,900 to Creek Co. for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

Prepare journal entries to record the above merchandising transactions of Blink Company, which applies the perpetual inventory system.