3. Net Method and Perpetual Inventory (15 points) Prepare journals entries for the following assuming that YouDo That Inc. uses a perpetual inventory method and records purchases at their net amounts. July 31 You DoThat company has $40,000 as it ending inventory this amount is reported at net of cost. (hints; no journal entry is necessary) August 1 Purchased merchandise from Cryout Company for $240,000 with the terms of 4/10, n/30. August 3 Returned $40,000 of the merchandise to the Cryout Company. August 6 Paid the amount owed to the Cryout Company. August 10 Sold all of the merchandise on hand Inclusive of the beginning Inventory for $680,000 of which $240,000 was in cash and $440,000 was on credit. August 13 Purchased merchandise from the Bodoya Company for $120,000 with the terms of 5/10, n/30. August 15 Returned $40,000 of the merchandise purchased from the Bodoya Company. August 28 Paid the amount owed to Bodoya Company in full