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 recelvable and payable, for example, record the purchase on August 1 in Accounts Payable-Luu Company, Aug. 1 Purchased necklaces from Luu Company for $4,700 under credit terms of 3/10, n/30, Fos destination. 4 At Luu Company's request, paid $420 for freight charges on the August 1 purchase, reducing the amount owed to Luu. 5 sold ringe to Green Ruby for $4,220 under credit terms of 2/10, 1/60, POB destination. The merchandise had cost $2,820. 8 Purchased bracelets from Jane Co. for $5,900 under credit terms of 1/10, n/45, POB shipping point. 9 Paid $395 shipping charges related to the August 5 sale to Green Ruby. 10 Green Ruby returned the rings purchased from the August 5 sale that had cost $510 and been sold for $870. 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 $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from Westco on credit, $6,700, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,150 under credit terms of 1/10, n/30, FOB shipping point. The merchandise had cont $1,060. 22 Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $250 to resolve the issue. 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase. 30 Paid Luu Company the amount due from the August 1 purchase. Prepare General Journal entries to record the above transactions Answer is not complete. No General Journal Credit Date Aug 01 Debit 4,700 1 Merchandise Inventory Accounts payablo-Luu Company 4.700 No Date Answer is not complete. General Journal Merchandise inventory Accounts payable-Luu Company Debit 1 Credit Aug 01 4.700 4,700 2 Aug 04 Accounts payable-Luu Company Cash 420 420 3 Aug 05 Accounts receivable-Green Ruby Sales 4,220 > 4,220 4 Aug 05 2,820 Cost of goods sold Merchandise inventory * 2,820 5 Aug 08 5,900 Merchandise inventory Accounts payable-Jane Co. 5,900 6 Aug 09 395 > Freight-out Cash 395 7 Aug 10 Sales returns and allowances 870 >> Accounts receivable Green Ruby 870 > 8 510 Aug 10 Merchandise inventory Cost of goods sold 510 7 Aug 10 Sales retums and allowances Accounts receivable Green Ruby 870 870 8 Aug 10 Merchandise inventory Cost of goods sold 510 O > 510 9 Aug 12 Accounts payableJane Co. Merchandise inventory 300 > 300 10 Aug 15 Cash Sales discounts Accounts receivable-Green Ruby O 11 Aug 17 6,700 Office equipment Accounts payable-WestCo. 6,700 12 Aug 18 Accounts payableJane Co. Merchandise inventory Cash OOO 13 > Aug 19 2,150 Accounts receivable-Chic Jewellery Sales 2,150 1,060 14 Aug 19 Cost of goods sold Merchandise inventory OS 1,060 250 15 Aug 22 Sales returns and allowances 11 Aug 17 Office equipment Accounts payable-WestCo. 6,700 6,700 12 Aug 18 Accounts payable Jane Co. Merchandise inventory Cash 13 Aug 19 Accounts receivable-Chic Jewellery Sales 2,150 Blo 2,150 14 Aug 19 Cost of goods sold Merchandise inventory 1,060 > 1,060 15 Aug 22 > 250 Sales returns and allowances Accounts receivable-Chic Jewellery 250 16 Aug 29 Cash Sales discounts Accounts receivable-Chic Jewellery 17 Aug 30 Accounts payable-Luu Company Cash >
