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Prepare journal entries to record the following merchandising transactions of Thompson's, which uses the perpetual inventory system. (Hint: It will help to identify each recelvable and payable; for example, record the purchase on August 1 in Accounts Payable-Zhang.) August 1 Purchased merchandise from zhang Company for $13,100 under credit terms of 1/10, A/30, Fos destination, invoice dated August 1. August 5 sold merehandise to Parker Corporation for $8,000 under credit terms of 2/10, a/60, Fob destination, invoice dated Auqust 5 . The merchandise had cost $4,800. Augute 8 Purchased merchandise from Turner Corporation for $6,520 under eredit teris of 1/10, n/45, Fob shipping point, invoice dated August 8 . August 9 Paid $925 cash for shipping charges related to the August 5 sale to Parker Corporation August 10 Parker returned merehandise from the August 5 sale that had cost Thompson's $300 and was sold for $600. The merchandise was restored to inventory. Auguat 12 After negotiations with Turner Corporation concerning problems with the purehases on August 8 , Thoapson's recelved a eredit memorandum fron Turner granting a price reduction of $1,000 of the $6,520 of goodi purchased. Augset 14At zhang's request, Thompson's paid $500 cash for freight charges on the August 1 purchase, redueing the amount oved to thang. August 15 Received balance due from Porker Corporation for the August 5 sale less the return on August 10 . August 18 Pald the asount due Turner Corporation for the August 8 purchase less the price allowance from aughat 12 . Apgunt 19 sold merchandise to Hall Company for $4,400 under eredit terms of n/10, Fos ahipping point, invoice dated August 19. The merchandise had cost $2,200. Auguot 22 Hall requested a price reduction on the August 19 sale because the merchandiae did not meet specificationa. Thomson's sent Hall a $500 credit memorandum toward the $4,400 involce to resolve the issue. August 29 Received Hall's cash payment for the amount due from the August 19 sale less the price allowance from August 22. August 30 Paid thang Company the amount due from the August 1 purchase

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