16. PQR Distributors applies the perpetual inventory system and the gross method of recording invoices. During the month of May the following transactions occurred May 1 Purchased merchandise from RST Inc. for $12,700 under credit terms of 2/15, n/45, FOB destination, and invoice dated May 1. May 3 Sold merchandise to DFE Corp. for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice date May 3. The merchandise had cost $5,000. May 5 Paid $350 cash for shipping charges related to the May 3 sale. Returned $2,000 of the merchandise purchased on May 1 to RST Inc.. May 6 May 7 May 13 DFE Corp. returned merchandise from the May 3 sale that had cost PQR $625 and had been sold for $1,000. The merchandise was restored to inventory. Received the balance due from DFE Corp. less the return. May 14 Paid the amount due RST Inc.. Using the attached T-account template (or a spreadsheet with the same level of account level detail) prepare the entries to recognize the transactions listed above. Label the entries with the date of the transaction.