Recording Purchase and Sales Transactions Raymond Company and Geeslin Company both use a perpetual inventory system. The following transactions occurred during the month of January: Jan. 1 Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts. 8 Raymond returned $500 of themerchandise to Geeslin. The cost of the merchandise returned was $375. 10 Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1. 30 Raymond paid Geeslin the balance due. Required: For a compound transaction, if an amount box does not require an entry, leave it blank. Prepare the journal entries to record these transactions on the books of Raymond. Jan. 1 Inventory Accounts Payable (Purchased inventory on credit) Jan. 8. Accounts Payable Inventory (Returned merchandise) Jan. 10 Accounts Payable Cash Inventory (Recorded payment within discount period) 000 88 0 000 < Prepare the journal entries to record these transactions on the books of Geeslin. Jan. 1 Jan. 1 (Record sale to customer) Jan. 8 (Recorded cost of merchandise sold) Jan. 8 (Recorded return of merchandise) Jan. 10 (Recorded cost of merchandise returned) Jan. 30 (Recorded receipt within discount period) (Recorded receipt outside of discount period) 88