PROBLEM IV

On a separate sheet, prepare general journal entries, without explanations,

for the merchandising transactions listed for Lowell Company. Assume

use of the perpetual inventory system and use the NET method.

May 1 Sold merchandise to Cento Company for $1,200, terms 2/10,

n/30, goods cost $800.

2 Purchased merchandise from Source Corporation for $3,000,

terms 2/10, n/30.

3 Gave credit to Cento Company for merchandise returned, $200. Cost of

goods returned were $120.

4 Purchased merchandise from Treblow Company for $4,700, terms

2/10, n/30.

7 Received amount owed from Cento Company for balance of May 1

purchase.

11 Returned $700 in merchandise to Treblow Company for credit.

11 Paid Treblow Company in full for purchase of May 4.

15 Paid Source Corporation in full for purchase of May 2.