Question

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 $3,800 under credit terms of 1/10, n/30, FOB destination.
	4	At Luu Company’s request, paid $330 for freight charges on the August 1 purchase, reducing the amount owed to Luu.
	5	Sold rings to Green Ruby for $3,680 under credit terms of 3/10, n/60, FOB destination. The merchandise had cost $2,370.
	8	Purchased bracelets from Jane Co. for $5,000 under credit terms of 1/10, n/45, FOB shipping point.
	9	Paid $305 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 $420 and been sold for $780. 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, $5,800, n/45.
	18	Paid the amount due Jane Co. for the August 8 purchase.
	19	Sold earrings to Chic Jewellery for $2,400 under credit terms of 1/10, n/30, FOB shipping point. The merchandise had cost $1,110.
	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.

Prepare General Journal entries to record the above transactions.

Answer 1