3. Charles & Charles Company is a new client of M&S Company. This client made it's first purchase of merchandise on December 21, worth $15,000. The seller provided credit terms of 1/8, n/45 and transportation terms of FOB Destinations. The following information are available: i. The merchandise sold had a cost of $8,300. ii. The goods were delivered to the client on December 22, the same day freight cost of $130 was paid. iii. Some of the goods delivered were damaged, therefore the client returned merchandise worth $1,000, back to the seller. The goods were returned on December 23. iv. The returned goods had a cost of $555. v. On December 29, the client made the final settlement of the money due to the seller. Required: a. Prepare the journal entries that will be included in the books of M&S Company and in the books of Charles & Charles Company. (Assume that M&S Company uses perpetual inventory system and Charles & Charles Company uses periodic inventory system) (10 Marks)