Diablo Corporation uses the perpetual inventory system. Please create journal entries for the following inventory transactions. Show any necessary work/calculations. October 2 - Purchased on account $7,200 of inventory for resale. Credit terms 2/10, n/30. FOB shipping point. October 3 - Paid $300 for shipping costs related to the October 2 inventory purchase. October 5 - Sold inventory, costing $12,000, to a customer for $16,000 retail price. Credit terms 1/15, n/40. FOB shipping point. October 7 - Returned $500 of defective inventory related to the October 2 purchase for an account credit. October 10 - Paid the balance of the account owed from the October 2 purchase. October 15 - Granted a $1,000 allowance against a customer's account relating to the October 5 sale of inventory. October 20 - Received payment of the net balance from the October 5 sale of inventory.