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Please explain where you derived the numbers from and explain any formula you used! Thanks!

Question 1 [35 points] Prepare journal entries for August 2014 to record the following transactions for Ludwig Inc. Assume a perpetual inventory system. Enter the transaction letter as the description when preparing a journal entry. When a transaction requires two separate journal entries, use the same letter for both descriptions. Dates must be entered in the format dd/mmm (ie. 15/Jan). a. August 8: Ludwig Inc.'s merchandise that cost $8,245 was sold to Gulf Corp. for $9,700 under credit terms of 2/10, n/90, FOB shipping point. b. August 8: Ludwig Inc.'s merchandise that cost $4,760 was sold to Velor Inc. for $5,600 under credit terms of 2/15, n/90, FOB shipping point. c. August 9: Issued a $2,400 credit memorandum to Velor Inc. for an allowance on goods sold on August 8. d. August 10: Received the balance due from Velor Inc. for the sale dated August 8. e. August 16: Received the balance due from Gulf Corp. for the sale dated August 8. f. August 24: Ludwig Inc. sold merchandise to Star Inc. that cost $5, 185 for $6, 100 cash. Please use the '+' and '- buttons to change the number of accounts (if necessary) for each journal entry. General Journa Page GJ8 Date Account/Explanation F Debit Credit +- + - + - + - + - + 9 + - Official Time: 13:26:41 SUBMIT AND MARK SAVE AND CLOSE