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Aug. 1 Purchased merchandise from Sherif Company for $4,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to

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Aug. 1 Purchased merchandise from Sherif Company for $4,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 5 Sold merchandise to Farid Corp. for $3,150 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $2,249. 8 Purchased merchandise from Shady Corporation for $3,800 under credit terms of 1/10,n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Shahab's request, Shady paid the $240 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges.) 9 Paid $270 cash for shipping charges related to the August 5 sale to Farid Corp. 10 Farid returned merchandise from the August 5 sale that had cost Shehab $375 and been sold for $525. The merchandise was restored to inventory. 12 After negotiations with Shady Corporation concerning problems with the merchandise purchased on August 8, Shehab received a credit memorandum from Shady granting a price reduction of $574 14 At Sherif's request, Shehab paid $160 cash for freight charges on the August 1 purchase, reducing the amount owed to Sherif 15 Received balance due from Farid Corp. for the August 5 sale less the return on August 10. 18 Paid the amount due Shady Corporation for the August 8 purchase less the price reduction granted. 19 Sold merchandise to Romany Co for $2,700 under credit terms of 1/10,n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $1,874 22 Romany requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Shehab sent Romany a $450 credit memorandum to resolve the issue. 29 Received Romany's cash payment for the amount due from the August 19 sale. 30 Paid Sherif Company the amount due from the August 1 purchase. Prepare journal entries to record the above merchandising transactions of Shehab Company, which applies the perpetual inventory system

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