Problem 5-3A Journal entries for merchandising activities-perpetual LO3 The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada. Consider the following perpetual system merchandising transactions of the Jewel Box Use a separate account for each receivable and payable for example. record the purchase on August 1 in Accounts Payable Luu Company Aug. 1 Purchased necklaces from tuu Company for $1,000 under Credit terus of 2/10, W30, o destination 4 At Luu Company's request, paid $250 for freight charges on the August 1 purchase, reducing the amount owed to Lou 5 Sold rings to Green Ruby for $3,200 under credit terms of 3/10, 1/60, Fon destination. The merchandise had cost $1,070. 8 Purchased bracelets from Jane Co. for $4,200 under credit terms of 2/10, 1/45, FOB shipping point 9 Paid $225 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $300 and been sold for $700. The merchandise was restored to inventory. 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit neno from Jane granting a price reduction of $500. 15 Received balance due fron Green Ruby for the August 5 sale 17 Purchased office equipment from Westco on credit, 55,800, 1/45 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,300 under credit terms of 2/10, 1/30, FOB shipping point. The merchandise had cost $1,190 22 Chic Jewellery requested a price reduction on the August 19. ale because the merchandise did not meet specifications Sent Chic Jewellery a credit memo for $200 to resolve the issue. 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase 30 Paid Lou Company the amount due from the August 1 purchase. Problem 5-4A Adjusting entries and multi-step income statement-perpetual LO5 Use the unadjusted trial balance of Electric Bike on December 31, 2020 Credit Debit $ 8,300 22.865 34.800 2.515 795 3,455 76,690 $ 13,855 3,200 Cash Accounts receivable Merchandise Inventory Store supplies Office supplies Prepaid insurance Equipment Accumulated depreciation, equipment Accounts payable Salaries payable Braeden Li, capital Braeden L1, withdrawals Interest income Sales Sales returns and allowances Cost of goods sold Salaries expense Rent expense Supplies expense Depreciation expense, equipment 172,465 63.000 330 530,000 5,270 381, 360 96, Sea 29, 300 Salaries expense Rent expense Supplies expense Depreciation expense, equipment Insurance expense Totals 381,160 96,500 29, 300 0 O $724,650 $724,850 ces Required: 1. Record adjusting entries for the following information a. The records show that the equipment was estimated to have a total estimated useful life of 10 years with a residual value at the end of its life of $14,690. b. The balance in the Prepaid Insurance account was reviewed and it was determined that $265 was unused at December 31, 2020 c. A review of the store supplies on December 31, 2020 revealed a balance on hand of $2,060, a similar examination of the office supplies showed that $650 had been used. d. Accrued salaries payable $1900 e. A count of the merchandise inventory revealed a balance on hand December 31, 2020, of $33,980. View transaction list 2011 d