The Jewel Box purchases jewellery from around the world and sells to local retailers in Canada . Consider the following perpetual system merchandising transactions of The Jewel Box. Use a separate account for each receivable and payable for example, record the purchase on August 1 in Accounts Payable Luu Company . Aug. 1 Purchased necklaces from Luu Company for $4,000 under credit terms of 1/1 * e , 1/30 destination. , FOB 4 At Luu Company's request, paid $350 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 Sold rings to Green Ruby for $ 3,800 under credit terms of 2/1 * e , n/60, FOB destination. The merchandise had cost $2,470. 8 Purchased bracelets from Jane Co. for $5,200 under credit terms of 1/10, n / 45 , FOB shipping point. 9 Paid $325 shipping charges related to the August 5 sale to Green Ruby. Green Ruby returned the rings purchased from the August 5 sale that had cost $ and been sold for $ 800. The merchandise was restored to inventory . 12 After negotiations with Jane Co. concerning problems with the merchandise purchased on August 8, received a credit memo from Jane granting a price reduction of $. 15 Received balance due from Green Ruby for the August 5 sale . 17 Purchased office equipment from Westco on credit , $6,000 , n / 45 . 18 Paid the amount due Jane Co. for the August 8 purchase . 19 Sold earrings to Chic Jewellery for $ 1,800 under credit terms of 1/1 * theta , n / 3 * theta , FOB shipping point . The merchandise had cost $ . 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise