n.com ab - Connect Saved Help Save Problem 5-3A Journal entries for merchandising activities-perpetual LO3 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 $4, 400 under credit terms of 3/10, n/30, FOB destination. At Luu Company's request, paid $390 for freight charges on the August 1 purchase, reducing the amount owed to Luu. Sold rings to Green Ruby for $4,040 under credit terms of 3/10, n/60, FOB destination. The merchandise had cost $2,670. 8 Purchased bracelets from Jane Co. for $5,600 under credit terms of 1/10, n/45, FOB shipping point. 9 Paid $365 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 $480 and been sold for $840. The merchandise was restored to inventory. 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 $300. 15 Received balance due from Green Ruby for the August 5 sale. 17 Purchased office equipment from WestCo on credit, $6, 400, n/45. 18 Paid the amount due Jane Co. for the August 8 purchase. 19 Sold earrings to Chic Jewellery for $2,000 under credit terms of 2/10, n/30, FOB shipping point. The merchandise had cost $1,030. Chic Jewellery requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sent Chic Jewellery a credit memo for $250 to resolve the issue. Received Chic Jewellery's payment of the amount due from the August 19 purchase. Paid Luu Company the amount due from the August 1 purchase. Prepare General Journal entries to record the above transactions View transaction list Prev of 18 Next