1: Prepare journal entries to record the following merchandising transactions of Nikita Convenience Store. [7 Marks] July 1 Purchased merchandise from Byte Inc. for $6,000 under credit terms of 1/15, n/30, FOB shipping point, invoice dated July 1. 2 Sold merchandise to Bayview School for $900 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 2. The merchandise had cost $500. 3 Paid $125 cash for freight charges on the purchase of July 1. 8 Sold merchandise that had cost $1,300 for $1,700 cash. 9 Purchased merchandise from Dove Manufacturing for $2,200 under credit terms of 2/15, n/60, FOB destination, invoice dated July 9. 11 Returned $200 of merchandise purchased on July 9 from Dove Manufacturing and debited its account payable for that amount. 12 Received the balance due from Bayview School for the invoice dated July 2, net of the discount. 16 Paid the balance due to Byte Inc. within the discount period. 19 Sold merchandise that cost $800 to York Museum for $1,200 under credit terms of 2/15, n/60, FOB shipping point, invoice dated July 19. 21 Gave a price reduction (allowance) of $100 to York Museum for merchandise sold on July 19 and credited York Museum's accounts receivable for that amount. 24 Paid Dove Manufacturing the balance due, net of discount. 30 Received the balance due from York Museum for the invoice dated July 19, net of discount. 31 Sold merchandise that cost $4,800 to Bayview School for $7,000 under credit terms of 2/10, n/60, FOB shipping point, invoice dated July 31