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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

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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 $3,600 under credit terms of 2/10, 1/30, POB destination. 4 At Luu Company's request, paid $310 for freight charges on the August 1 purchase, reducing the amount owed to Lu. 5 Sold rings to Green Ruby for $3,560 under credit terms of 3/10, n/60, POB destination. The merchandise had cost $2,270. 8 Purchased bracelets from Jane Co. for $4,800 under credit term of 2/10, /45, FOB shipping point! 9 Paid $285 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 $400 and been sold for $760. 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 $500. 15 Received balance due from Green Ruby for the August. 5 sale. 17 Purchased office equipment from Westco on credit, $5.600, 1/45. 18 Paid the amount due Jane Co. for the August 8 purchase 19 Sold earrings to Chic Jewellery for $2,500 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,130. 22 Chia Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $200 to resolve the issue. 29 Received Chic Jewellery's payment of the amount due from the August 19 purchase. 30 Paid Lau Company the amount due from the August 1 purchase. Prepare General Journal entries to record the above transactions. A merchandising company Help 7 Multiple Choice Kipped Earns profit from buying and selling merchandise Print Terences Buys products from manufacturers and sells to retailer Buys products from manufacturers and sells them to consumers Reports cost of goods sold on the income statement All of the above A merchandising company Multiple Choice Earns profit from buying and seling merchandise Buys products from manufacturers and sells to retailer Buys products from manufacturers and sells them to consumers Reports cost of goods sold on the income statement All of the above

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