1. (50 points) Serene Spa Sales uses the perpetual inventory system and the gross method of accounting for purchases and sa had the following transactions during August. Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold Aug 1 had a cost of $3,500. 3 Purchased merchandise for cash, $2,720. Purchased merchandise on credit for $2,600, terms 1/20, n/30. Issued a credit memorandum for $3,000 to a customer who returned 5 merchandise purchased July 20. The returned items had a cost of $2,010. 10 Received payment for merchandise sold August 1. Received a credit memorandum from the seller for the return of 15 defective merchandise purchased on August 4 for $600. Paid freight charges of $200 for merchandise ordered last month. (FOB 18 shipping point) Paid for the merchandise purchased August 4 less the portion that was 23 returned. Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a 24 cost of $4,900. 1 Received payment for merchandise sold on August 24. quired: using the general journal below, prepare the general journal entries to record these transactions