GL0402 (Algo) - Based on Problem 4-2A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Thompson's, which uses the perpetual inventory system. (Hint: It will help to identify each receivable and payable; for example, record the purchase on August 1 in Accounts Payable-Zhang.) August 1 Purchased merchandise from Zhang Company for $13,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. August 5 Sold merchandise to Parker Corporation for $8,000 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,800. August 8 Purchased merchandise from Turner Corporation for $6,520 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. August 9 Paid $925 cash for shipping charges related to the August 5 sale to Parker Corporation August 10 Parker returned merchandise from the August 5 sale that had cost Thompson's $300 and was sold for $600. The merchandise was restored to inventory. August 12 After negotiations with Turner Corporation concerning problems with the purchases on August 8, Thompson's received a credit memorandum from Turner granting a price reduction of $1,000 off the $6,528 of goods purchased. August 14 At Zhang's request, Thompson's paid $500 cash for freight charges on the August 1 purchase, reducing the amount owed to Zhang. August 15 Received balance due from Parker Corporation for the August 5 sale less the return on August 10. August 18 Paid the amount due Turner Corporation for the August 8 purchase less the price allowance from August 12. August 19 Sold merchandise to Hall Company for $4,400 under credit terms of n/10, FOB shipping point, invoice dated August 19. The merchandise had cost $2,200. August 22 Hall requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Thompson's sent Hall a $500 credit memorandum toward the $4,400 invoice to resolve the issue. August 29 Received Hall's cash payment for the amount due from the August 19 sale less the price allowance from August August 30 Paid Zhang Company the amount due from the August 1 purchase. 22. Requirement General Journal General Ledger Trial Balance Schedule of Receivables Schedule of Payables Income Statement Impact on Income Check View transaction list Journal entry worksheet < 1 2 3 4 5 6 7 8 ..... 16 Purchased merchandise from Zhang Company for $13,100 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Note: Enter debits before credits. Date August 01 Account Title Debit Credit + Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 67 8..... 16 Sold merchandise to Parker Corporation for $8,000 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. Note: Enter debits before credits. Date August 05 Account Title Debit Credit Record entry Clear entry View general journal 1 2 3 4 5 6 The merchandise sold to Parker had cost $4,800. Note: Enter debits before credits. Date August 05 7 8..... 16 Account Title Debit Credit Record entry Clear entry View general journal V Journal entry worksheet < 1 2 3 5 6 7 8 ... 16 Purchased merchandise from Turner Corporation for $6,520 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. Note: Enter debits before credits. Date August 08 Account Title Debit Credit Record entry Clear entry View general journal Journal entry worksheet < 1 2 3 4 5 D 6 7 8 ... 16 Paid $925 cash for shipping charges related to the August 5 sale to Parker Corporation Note: Enter debits before credits. Date August 09 Account Title Debit Credit Record entry Clear entry View general journal