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Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Lamont, Inc., during the month of June: Sold and shipped on account to Lowery Company, $2,880 (52,000 cost) of merchandise, with terms of 1 Lowery Company returned defective merchandise billed at $280 on June 21 ($210 cost) Received from Lowery Company a check for full settlement of the June 21 transaction. 28 30 Required Prepare the necessary journal entries for (a) Lamont. Inc., and (b) Lowery Company. Both companies use the perpetual inventory system. a. LAMONT, INC. GENERAL JOURNAL Debit Credit Date Description June 21 Sold merchandise to Lowery Company terms 2/10, n/30. 21 Cost of merchandise sold to Lowery Company. Sold merchandise to Lowery Company terms 210, 1/30 0 21 Cost of merchandise sold to Lowery Company 28 Merchandise returned by Lowery Company. 28 Cost of merchandise returned by Lowery Company. 30 Sales Discounts Received amount due from Lowery Company. b. LOWERY COMPANY GENERAL JOURNAL Date Description Debit Credit June 21 Purchased merchandise from Lamont, Inc.; terms 2/10, n/30. 28 Returned merchandise to Lamont, Inc 30 Cash Paid amount due to Lamont, Inc. Accounts payable Accounts Receivable Cash Cost of Goods Sold Inventory Sales Revenue Sales Returns and Allowances Sales Discounts LI