In August, Healthcheck Sales, a medical supplies wholesaler, entered into the following transactions (the business uses the perpetual inventory system):

Required:
Prepare journal entries to record the preceding transactions.

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Date Transaction 1 Aug. Purchased $5500 of medical supplies on credit from Nead Company 3 Returned $220 of defective medical supplies purchased on 1 August from Nead Company for credit 5 Sold $2200 of medical supplies on credit to P & H Drugs. The cost of the inventory sold was $1200 8 9 10 Granted $330 credit to P & H Drugs for retum of medical supplies purchased on 5 August. The cost of the inventory returned was $180 Purchased $1100 of medical supplies for cash Paid balance due to Nead Company for purchase of 1 August 15 Received balance due from P & H Drugs for medical supplies purchased on 5 August 30 Sold $880 of merchandise to customers for cash. The cost of the inventory sold was $500