prepare journal entries to record the following merchandising transactions of wave c 645444

Prepare journal entries to record the following merchandising transactions of Wave Company, which applies the perpetual inventory system.

July 3 Purchased merchandise from CAP Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3.

4 At CAP’s request, Wave paid $250 cash for freight charges on the July 3 purchase, reducing the amount owed to CAP.

7 Sold merchandise to Morris Co. for $10,500 under credit terms of 2/10, n/60, FOB destination, invoice dated July 7. The merchandise had cost $7,500.

10 Purchased merchandise from Murdock Corporation for $14,200 under credit terms of 1/10, n/45, FOB shipping point, invoice dated July 10. The invoice showed that at Wave’s request, Murdock paid the $600 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.)

11 Paid $300 cash for shipping charges related to the July 7 sale to Morris Co.

12 Morris returned merchandise from the July 7 sale that had cost Wave $1,250 and been sold for $1,750. The merchandise was restored to inventory.

14 After negotiations with Murdock Corporation concerning problems with the merchandise purchased on July 10, Wave received a credit memorandum from Murdock granting a price reduction of $2,000.

17 Received balance due from Morris Co. for the July 7 sale less the return on July 12.

20 Paid the amount due Murdock Corporation for the July 10 purchase less the price reduction granted.

21 Sold merchandise to Ulsh for $9,000 under credit terms of 1/10, n/30, FOB shipping point, invoice dated July 21. The merchandise had cost $6,250.

24 Ulsh requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Wave sent Ulsh a credit memorandum for $1,500 to resolve the issue.

30 Received Ulsh’s cash payment for the amount due from the July 21 sale.

31 Paid CAP Corp. the amount due from the July 3 purchase.