| Aug. | 1 | Purchased merchandise from Arotek Company for $8,200 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. |
| | 4 | At Aroteks request, Sheng paid $340 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek. |
| | 5 | Sold merchandise to Laird Corp. for $5,740 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4,098. |
| | 8 | Purchased merchandise from Waters Corporation for $7,500 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Shengs request, Waters paid the $240 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.) |
| | 9 | Paid $160 cash for shipping charges related to the August 5 sale to Laird Corp. |
| | 10 | Laird returned merchandise from the August 5 sale that had cost Sheng $683 and been sold for $957. The merchandise was restored to inventory. |
| | 12 | After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $1,133. |
| | 15 | Received balance due from Laird Corp. for the August 5 sale less the return on August 10. |
| | 18 | Paid the amount due Waters Corporation for the August 8 purchase less the price reduction granted. |
| | 19 | Sold merchandise to Tux Co. for $4,920 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $3,414. |
| | 22 | Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $820 credit memorandum to resolve the issue. |
| | 29 | Received Tuxs cash payment for the amount due from the August 19 sale. |
| | 30 | Paid Arotek Company the amount due from the August 1 purchase. |
