entries to record the following merchandising transactions of Sheng Company, which for hased merchandise from Arotck Company for $7.500 under credit terms of 1/10./30 4 At Arotek's request, Sheng paid $200 cash for freight charges on the August I purchase, reduc- s Sold merchandise to Laird Corp. for $5.200 under credit terms of 2/10, n/60, FOB destination. Prepare journal entries to applies the perpetual i cumple, record the purchase on August 1 in Accounts Payable-Arotek) Problem 5-2A Preparing journal entries for merchandising activities- perpetual system l inventory system. Hint: It will help to identify each receivable and payable; Ang 1 Purc FOB destination, invoice dated August ing the amount owed to Abilene. invoice dated August 5. The merchandise had cost $4,000. 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45 FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request, Waters paid the $140 shipping charges and added that amount to the bill. (Hint: Discounts are not applied to freight and shipping charges) 9 Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp 10 Check Aug 9, Dr. Delivery Expense, $125 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for 5600. The merchandise was restored to inventory 12 After negotiations with Waters Corporation concerning problems with the merchandise pur- chased on August 8. Sheng received a credit memorandum from Waters granting a price reduction of $700