1. Record ABC Merchandising's transactions in its general journal. The beginning balance of the Merchandise Inventory Account is $40,000. The company uses a periodic inventory system.(50 points, each journal entry is 5 points, calculation of the COGS is 5 points) August1 Sold merchandise on credit for $45,000, terms 1/10, n/30, FOB destination. August2 Paid $900 for the shipment of the goods sold on August1. August3 Purchased 17,000 merchandise on credit, terms 3/10, n/30, FOB shipping point August4 Paid 500 for the shipment of the merchandise purchased on August 3. August4 Return of merchandise sold on August1 accepted from the customer for full credit and returned to merchandise inventory, $5,000. August5 Paid $70 for the shipment of the goods returned by the customer on August 4.