1.Prepare journal entries to record the following merchandise transactions of Geo Company, which applies the perpetual inventory system.

May 1

Purchased merchandise from Amok Company for $11,200 under credit terms of 2/15, n/45, FOB destination, and invoice dated May 1.

3

Sold merchandise to Lawton for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice date May 3. The merchandise had cost $5,000.

5

Paid $350 cash for shipping charges related to the May 3 sale.

6

Returned $2,000 of the merchandise purchased on May 1 to Amok Company.

7

Lawton returned merchandise from the May 3 sale that had cost Geo $625 and had been sold for $1,000. The merchandise was restored to inventory.

13

Received the balance due from Lawton less the return.

14

Paid the amount due Amok Company.