3. Prepare ABC Co.'s journal entries for each of the following transactions. Assume that a perpetual inventory method is used. Recording Purchases of Merchandise a. ABC Co. purchases $15,000 of inventory on account, terms 3/10 net 30 from Train Company. b. ABC Co. returns $1,500 of inventory to Train from the initial purchase. C. ABC Co. pays the balance owed to Train Company, taking the discount. Recording Sales of Merchandise (new scenario) d. ABC Co. sells merchandise on account for $7,500 (terms 3/10 net 30) to Blue Co. The merchandise had cost ABC Co. $3,750. e. Blue Co. returns $500 of the merchandise to ABC Co. Assume this returned merchandise had cost ABC Co. $300. f. Blue Co. pays ABC Co. the balance owed within 10 days of the sale. 00 View as Text Download