1) Prepare journal entries to record the following merchandising transactions of Margin Company, which applies the perpetual inventory system and the gross method of recording invoices. Margin Company offers all of its credit customers credit terms of 2/10, n/30. May 1 Purchased merchandise from Craft Company for $7,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated May 1 Purchased merchandise from Bow Company for $10,600 under credit terms 2/05, n/20, FOB destination. May 2 May 3 Sold merchandise to Sting Company for S5.600, FOB shipping point, invoice dated May 4. The merchandise had cost $3,000 Paid $300 cash for the freight charges on the May I purchase of merchandise. May 4 May 5 Received an $800 credit memorandum from Craft Company for the return of part of the merchandise purchased on May1 May__ Paid Bow-onpanythe baTancedue within the discount period. May 8 Sold merchandise to Skeet Company tor $3,300, FOB shipping point, invoice dated May 8. The merchandise had a cost of $1,500 May 11 Paid Craft Company the balance due within the discount period May 13 Receivedthebalance duefrom Sting ( ompanywithinthe discount period May 14 Issued a credit $300 credit memorandum to Skeet Company for an allowanc - on defective merchandise May 17 Received the balance due from Skeet Company withi d nthe discount perio