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The following are merchandising transactions of Wave Company, which applies the periodic inventory system. July 3 Purchased merchandise from CAP Company for RO. 15,000 under

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The following are merchandising transactions of Wave Company, which applies the periodic inventory system. July 3 Purchased merchandise from CAP Company for RO. 15,000 under credit terms of 1/10, 1/30, FOB destination July 4 At CAP's request, Wave paid RO. 250 cash for freight charges on the July 3 purchase, reducing the amount owed to CAP July 7 Sold merchandise to Morris Company for RO. 10,500 under credit terms of 2/10, n60, FOB destination. The merchandise had cost RO. 7,500 July 10 Purchased merchandise from Dock Corporation for RO. 14,200 under credit terms of 1/10, n 45, FOB shipping point. The invoice showed that at Wave's request, Dock paid the RO. 600 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.) July 11 Paid RO. 300 cash for shipping charges related to the July 7 sale to Morris Company July 12 Morris returned merchandise from the July 7 sale that had cost Wave RO. 1,250 and been sold for RO. 1,750. The merchandise was restored to inventory. July 14 After negotiations with Dock Corporation concerning problems with the merchandise purchased on July 10, Wave received a credit memorandum from Dock granting a price reduction of RO. 2,000. July 17 Received balance due from Morris Company for the July 7 sale. July 20 Paid the amount due Dock Corporation for the July 10 purchase less the price reduction granted. July 21 Sold merchandise to Lush for $9,000 under credit terms of 1/10, 1/30, FOB shipping point. The merchandise had cost RO. 6,250. July 24 Lush requested a price reduction on the July 21 sale because the merchandise did not meet specifications Wave sent Lush a credit memorandum for RO.1,500 to resolve the issue. July 30 Received Lush's cash payment for the amount due from the July 21 sale July 31 Paid CAP Company the amount due from the July 3 purchase Instructions i. Prepare the subsidiary ledger, payable ledger, and receivable ledger

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