Required:

Record the following transactions in the general journal provided. Add additional rows as necessary.

August $1$: Purchased merchandise on account in the amount of $$8,470$ from $M.$ Ltd$.$ terms $\frac{2}{10},\frac{n}{30}.$ The company also paid freight on the goods of $$175($in cash$).$

August $5$: Returned defective merchandise in the amount of $$1,220$ to $M$ Ltd$.$

August $6$: Sold merchandise to R Ltd$.$ in the amount of $$29,000$ under terms $\frac{1}{10},\frac{n}{25}.$ The goods had been priced to allow a $20\%$ gross profit.

August $7$: Sold merchandise to $W$ Ltd$.$ in the amount of $$9,950$ under terms $\frac{2}{10},\frac{n}{60}.$ The goods had cost $$8,230.$

August $9$: Paid M Ltd$.$

August $9$: W Ltd$.$ returned half of the order saying it was unsuitable for their needs. The goods returned were put back into inventory.

August $10$: Issued a credit memorandum $($allowance$)$ to R Ltd$.$ in the amount of $$600$ after $R$ complained about the quality of one of the items ordered.

August $12$: Received payment from R Ltd$.$

August $15$: Received payment from W Ltd$.$