D2, 3 P5-4A. Journal Entries for Merchandise Transactions-Perpetual System Cushing Distributing Com- pany uses the perpetual inventory system. Cushing had the following transactions related to merchan. dise during the month of June: June 1 Purchased on account merchandise for resale for $10,000; terms were 2/10,n/30. 3 Paid $550 cash for freight on the June 1 purchase. 7 Returned merchandise costing $600 (part of the $10,000 purchase). 10 Paid for merchandise purchased on June 1. 13 Sold merchandise on account costing $8,000 for $10,000; terms were 2/10, n/30. June 16 Customer returned merchandise costing $750 that had been sold on account for $1,000 (part of the $10,000 sale). 22 Received payment from customer for merchandise sold on June 13. Required Prepare journal entries for each of the transactions for the Cushing Distributing Company te income statement: L04