2. 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