Serene Spa Sales Uses the Perpetual Inventory System and the Gross

Essay

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.
$\begin{array}{|l|l|}\hline \text { Aug 1 } & \begin{array}{l}\text { Sold merchandise on credit for } \$ 5,000, \text { terms } 3 / 10, \mathrm{n} / 30 . \text { The items sold had a } \\\text { cost of } \$ 3,500 .\end{array} \\\hline 3 & \text { Purchased merchandise for cash, } \$ 2,720 . \\\hline 4 & \text { Purchased merchandise on credit for } \$ 2,600, \text { terms } 1 / 20, \mathrm{n} / 30 . \\\hline 5 & \begin{array}{l}\text { Issued a credit memorandum for } \$ 3,000 \text { to a customer who returned } \\\text { merchandise purchased July } 20 . \text { The returned items had a cost of } \$ 2,010 .\end{array} \\\hline 10 & \text { Received payment for merchandise sold August } 1 . \\\hline 15 & \begin{array}{l}\text { Received a credit memorandum from the seller for the return of defective } \\\text { merchandise purchased on August } 4 \text { for } \$ 600 .\end{array} \\\hline 18 & \begin{array}{l}\text { Paid freight charges of } \$ 200 \text { for merchandise ordered last month. (FOB } \\\text { shipping point) }\end{array} \\\hline 23 & \begin{array}{l}\text { Paid for the merchandise purchased August } 4 \text { less the portion that was } \\\text { returned. } \\\end{array} \\ \hline24 & \begin{array}{l}\text { Sold merchandise on credit for } \$ 7,000 \text {, terms } 2 / 10, n / 30 . \text { The items had a cost } \\\text { of } \$ 4,900\\ \end{array} \\\hline 31 & \text { Received payment for merchandise sold on August } 24 .\\\hline\end{array}$
Required:
Prepare the general journal entries to record these transactions.