Question 3 (of 3) value: 50.00 points terms of 1/10, n.30, FOB 1 4 At Abilene's request, Stone paid $100 cash for freight charges on the August 1 purchase, reducing the 5 Sold merchandise to Lux Corp. for $4,200 under credit terms of 2/10, n/60, FOB destination, invoice Aug. Purchased merchandise from Abilene Company for $6,000 under credit destination, invoice dated August 1 amount owed to Abilene. dated August 5. The merchandise had cost $3,000. 8 Purchased merchandise from Welch Corporation for $5,300 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Stone's request, Welch paid the $240 shipping charges and added that amount to the bill. Hint Discounts are not applied to freight and shipping charges.) 9 Paid $120 cash for shipping charges related to the August 5 sale to Lux Corp 10 Lux returned merchandise from the August 5 sale that had cost Stone $500 and been sold for $700. The merchandise was restored to inventory. 12 After negotiations with Welch Corporation concerning problems with the merchandise purchased on August 8, Stone received a credit memorandum from Welch granting a price reduction of $800 15 Received balance due from Lux Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due to Welch Corporation for the August 8 purchase less the price reduction granted. 19 Sold merchandise to Trax Co. for $3,600 under credit terms of 1/10, n30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,500 22 Trax requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Stone sent Trax a $600 credit memorandum to resolve the issue. 29 Received Trax's cash payment for the amount due from the August 19 sale. 30 Paid Abilene Company the amount due from the August 1 purchase Prepare journal entries to record the above merchandising transactions of Stone Company, which applies the perpetual inventory system. (ldentify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Abilene.) (Omit the "$" sign in your response.) General Journal Aug. 1 (Click to select) (Click to select) 4 (Click to select) (Click to select) 5 (Clck to select) esc 898 2 3 4 6