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 $3,200 under credit terms of 1/10, n/30, FOB destination.
4	At Luu Company's request, paid $270 for freight charges on the August 1 purchase, reducing the amount owed to Luu.
5	Sold rings to Green Ruby for $3,320 under credit terms of 3/10, n/60, FOB destination. The merchandise had cost $2,070.
8	Purchased bracelets from Jane Co. for $4,400 under credit terms of 1/10, n/45, FOB shipping point.
9	Paid $245 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 $360 and been sold for $720. The merchandise was restored to inventory.
12	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, $5,200, n/45.
18	Paid the amount due Jane Co. for the August 8 purchase.
19	Sold earrings to Chic Jewellery for $2,700 under credit terms of 1/10, n/30, FOB shipping point. The merchandise had cost $1,170.
22	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 $300 to resolve the issue.
29	Received Chic Jewellery's payment of the amount due from the August 19 purchase.
30	Paid Luu Company the amount due from the August 1 purchase.

Journalize the above transactions.

Date	General Journal	Debit	Credit

Answer rating: 100% (QA)

SOLUTION DATE GENERAL JOURNAL DEBIT CREDIT AUG 1 JEWELRY NECKLACE DR 3200 TO AP LUU COMPA... View the full answer