The following traactions occumed beween Gregory Phamaceand Ater Dnug Stores during December of the curent yeer O (Click the lecon te view the transactions) Required Joumalie these trnsactons freton the beoks of Awater Drug Stres, and second on the books of Gregory Phamaceicals. Both companies use the perpetual invertory system First, le's prepare the entes for Ater Drug Stores December Atwter purchased $45.000 of merchandise from Gregory on credit terms of 210, n30, FOB shipping point Separately, Awater paid freight in of $2.200. Gregory imvoiced Atwaer for $45.000. These goods cost Gregory $12.800 We will record each element of thtaaction separately Start with recording the purchase on account (Record debits first, then eredita. Exclude explanations from journal entries) Jounal Entry Date Accounts Debit Credit Next, trom the December ansaction, record the payment of the freight charges Journal Entry Date Accounts Debit Credit December 11. Alwater retumed $3.600 of the merchandise purchased on December 8. Gregery ied a credit meme for this amount and retumed the goods, in excellent condition, to inveentory (ot $1.750) Joumal Entry Date Accounts Debit Credit Dec 11 December 17. Atwater paid $15,000 of the invoice amount owed to Gangory for the December a purchase. This payment included nene ot the teight charges. Atater took the purchase dscount on the part payment Go shead and os the payment on account Joumal Entry Date Accounts Debit Credit Dec 17 December 26. Atwater paid the remaining amount owed to Gregory for the December 8 purchase Journal Entry Date Accounts Debit Credit Dec 26 Now we will record the entries of Gregory Phammaceuticals December 8. Atwater purchased $45,000 of merchandise from Gregory on credi lerms of 210, v30, FOB shipping point. Separatey Atwater paid freight in of $2,200. Gregory invoiced Atwaer for $45.000. These goods cost Gregory $1200 Ne will record each element of the transaction separately Begin with the sale on account Journal Entry Accounts Debit Credit Date