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Prepare journal entries to record the following merchandising transactions of Lee'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-Clinton.) Jul Purchased merchandise from Clinton Company for $6,400 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. Jul. 2 Sold merchandise to Allen Co. for $1,100 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $660. Jul. 3 Paid $205 cash for freight charges on the purchase of July1. Jul. 8 Sold merchandise that had cost $1,300 for $2,100 cash Jul. 9 Purchased merchandise from Garcia Co. for $2,400 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9 Jul. 11 Received a $500 credit memorandum from Garcia Co. for the return of part of the merchandise purchased on July 9. Jul. 12 Received the balance due from Allen Co. for the invoice dated July 2, net of the discount Jul. 16 Paid the balance due to Clinton Company within the discount period Jul. 19 Sold merchandise that cost $1,100 to Taylor Co. for $1,600 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19 Jul. 21 Issued a $300 credit memorandum to Taylor Co. for an allowance on goods sold on July 19. Jul. 24 Paid Garcia Co. the balance due, net of discount. Jul. 30 Received the balance due from Taylor Co. for the invoice dated July 19, net of discount. Jul. 31 Sold merchandise that cost $4,400 to Allen Co. for $7,400 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31

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