2 of 14 Question 2 [CLO-2] On May 4, Chelsea Video Company purchased merchandised inventory for $36,000 on account from Highpoint Electronic Inc. With the merchandised inventory is an invoice dated May 4, with terms of 3/10, n/90, FOB shipping point. The goods cost Highpo$30,000. When the goods are delivered Chelsea paid $200 freight-in (transportation- in) on its purchase from Highpoint Electronic On May 8, Chelsea Video Company returned goods for $8,000 to Highpoint Electronic because the goods were damaged. The returned goods had cost Highpoint $4,500 On May 12, Chelsea Video Company paid Highpoint Electronic for the amount owed. (Both Chelsea Video Company and Highpoint use a perpetual inventory system.) Required: Part a) Prepare journal entries that Chelsea Video Company records for these transactions on the dates May 4th, May 8th and May 12th (3 marks) Part b) Prepare journal entries that Highpoint records for these transactions on the dates May 4th, May 8th and May 12th. (3 marks) For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) BI US Paragraph XX, Arial 10pt Y A 3 BB 20 I. xa PL F (1)