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1 15 points eBook Ask Print References Saved Help Save & Exit Sub Check my wor GLO401 (Algo) - Based on Problem 4-1A LO P1, P2 Prepare journal entries to record the following merchandising transactions of Allen'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-Perez.) July 1 Purchased merchandise from Perez Company for $9,200 under credit terms of 1/15, n/30, FOB shipping point, 4 invoice dated July 1. July 2 Sold merchandise to Cabela Company for $2,500 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $1,500. July 3 Paid $765 cash for freight charges on the purchase of July 1. July 8 Sold merchandise that had cost $2,900 for $4,900 cash. July 9 Purchased merchandise from Wright Company for $3,800 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. July 11 Returned $800 of merchandise purchased on July 9 from Wright Company and debited its account payable for that amount. July 12 Received the balance due from Cabela Company for the invoice dated July 2, net of the discount. July 16 Paid the balance due to Perez Company within the discount period. July 19 Sold merchandise that cost $3,100 to Lee Company for $4,400 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. July 21 Gave a price reduction (allowance) of $900 to Lee Company for merchandise sold on July 19 and credited Lee's accounts receivable for that amount. July 24 Paid Wright Company the balance due, net of discount. July 30 Received the balance due from Lee Company for the invoice dated July 19, net of discount. July 31 Sold merchandise that cost $6,100 to Cabela Company for $10,200 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31.

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