Clicker Question Preparation Guide: Ch. 5 & 6 Clicker questions will be asked in class based on your completion of this preparation guide. You will not have time to complete this guide in class! Part 1: 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 $16,000 of inventory on account, terms 3/10 net 30 from Sampson Company. inventory 16000 AP 16000 b. ABC Co. returns $1,800 of inventory to Sampson from the initial purchase. inventory 1960 C. ABC Co. pays the balance owed to Sampson Company, taking the discount. A/P 14200 carn 13720 4 4000 Recording Sales of Merchandise (new scenario) d. ABC Co. sells merchandise on account for $7,600 (terms 2/10 net 30) to Blue Co. The merchandise had cost ABC Co. $3,750. ALAIR 7600 saies 7600 COGS 3750 Inventory 3750 e. Blue Co. returns $500 of the merchandise to ABC Co. Assume this retumed merchandise had cost ABC Co. $300. sales return 300 AIR 300 inventory 300. COGS 306 f. Blue Co. pays ABC Co. the balance owed within 10 days of the sale. sales discount 152 cash 7600 7600 - 300 - 7300 A/1483