+ GL0401 (Algo)- Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Hall's, which uses the perpetual inventory system and the gross method. (Hint: It will help to identify each receivable and payable; for example, record the purchase on July 1 in Accounts Payable-Wilson.) July 1 Purchased merchandise from Wilson Company for $8,800 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. July 2 Sold merchandise to Lee Company for $2,300 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,380. July 3 Paid $685 cash for freight charges on the purchase of July 1. July Sold merchandise that had cost $2,700 for $4,500 cash. July 9 Purchased merchandise from King Company for $3,600 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $700 of merchandise purchased on July 9 from King Company and debited its account payable for that amount. July 12 Received the balance due fron Lee Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Wilson Company within the discount period. July 19 Sold merchandise that cost $2,800 to Cabela Company for $4,000 under credit terms of 2/15, n/60, Fon shipping. point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $800 to Cabela Company for merchandise sold on July 19 and credited Cabela's accounts receivable for that amount. July 24 Paid King Company the balance due, net of discount. July 30 Received the balance due from Cabela Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $5,900 to Lee Company for $9,800 under credit terns of 2/10, n/60, rob shipping i point, invoice dated July 31. 9 July 12 Cash 10 July 16 Sales discounts Accounts receivable-Lee Accounts payable - Wilson Merchandise inventory Accounts receivable - Cabela F 11 July 19 Sales 12 July 191 Cost of goods sold 13 July 21 Merchandise inventory Sales retums and allowances Accounts receivable-Cabela 14 July 24 Accounts payable-King Merchandise inventory 15 July 30 Cash 16 July 31 Sales discounts Accounts receivable Cabela Accounts receivable-Lee Sales 000 00 2,300 46 2,346 00 00 00 000 00 800- 800 9,800 9.800