Exercise 6 (30 points) On May 5 2020, London Home Ltd, purchased 12,500 of merchandise from Scandinavian Wood Designs, FOB destination, terms 3/15, n/30. Scandinavian Wood Designs pays the freight costs of 900 on May 6. Damaged goods totaling 1,200 are returned to Scandinavian Wood Designs for credit on May 10. The fair value of these goods is 500. On May 19, London Home pays Scandinavian Wood Designs in full, less the purchase discount. Both companies use a perpetual inventory system. Instructions a. Prepare separate journal entries for each transaction on the books of London Home. b. Prepare separate journal entries for each transaction for Scandinavian Wood Designs Assume that the merchandise purchased by London Home on May 5 had cost Scandinavian Wood Designs 7,500