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A company uses the perpetual inventory system and the gross method of accounting for purchases and sales. It had the following transactions during August. August 1 Sold merchandise on credit for $5,700, terms 3/10,n/30. The itens sold had a cost of $4,200. August 3 Purchased berchandise for cash, $2,790. August 4 Purchased merchandise on credit for $4,000, terms 1/20,n/30. August 5 Customer returns $3,140 of merchandise purchased July 20 . The returned items had a cost of $2,080. The returned items are restored to inventory and the customer's Accounts Receivable is credited. August 10 Received payment for merchandise sold August 1. August is After negotiations, received a $600 allowance (for scuffed merchandise) toward the amount owed on the August 4 purchase. August 18 Paid freight charges of $270 for merchandise ordered last month. (F0B shipping point) August 23 Paid for the merchandise purchased August 4 less the allowance. August 24 Sold merchandise on credit for $7,700, terms 2/10,n/30. The items had a cost of $4,990. August 31 Received payment for merchandise sold on August 24. Prepare journal entries to record these transactions. Journal entry worksheet 67 Sold merchandise on credit for $5,700, terms 3/10,n/30. Note: Enter debits before credits. Purchased merchandise on credit for $4,000, terms 1/20,n/30. Note: Enter debits before credits. Journal entry worksheet Paid freight charges of $270 for merchandise ordered last month. (FOB shipping point) Note: Enter debits before credits. Journal entry worksheet 4 Note: Enter debits before credits. A company reports sales of $1,010,000, sales discounts of $2,400, sales returns and allowances of $11,400, cost of goods sold of $505,000, general and administrative expenses of $19,000, and selling expenses of $28,000. Compute gross profit. Journal entry worksheet Customer returns $3,140 of merchandise purchased July 20 . Note: Enter debits before credits. Journal entry worksheet