Serene Spa Sales uses the perpetual inventory system and the gross method of accounting for purchases and sales and had the following transactions during August. August 1 Sold merchandise on credit for $5,000, terms 3/10,n/30. The items sold had a cost of $3,500. August 3 Purchased merchandise for cash, $2,720. August 4 Purchased merchandise on credit for $2,600, terms 1/20,n/30. August 5 Customer returns $3,000 of merchandise purchased July 20 . The returned items had a cost of $2,010. The returned items are restored to inventory and the customer's Accounts Receivable is credited. August 10 Received payment for merchandise sold August 1. August 15 After negotiations, received a $600 allowance (for scuffed merchandise) toward the amount owed on the August 4 purchase. August 18 Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point) August 23 Paid for the merchandise purchased August 4 less the allowance. August 24 Sold merchandise on credit for $7,000, terms 2/10,n/30. The items had a cost of $4,900. August 31 Received payment for merchandise sold on August 24. Required: Prepare the general iournal entries to record these transactions
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