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1II. Merchandise Journat Entries (16 peints) Prepare the journal entries to record these transactions in (a) Madison's records and (b) Sheboygaby. rocords. Assume use of the perpetual inventory system for both companies. May I Madison Company purchased $10,000 worth of merchandise, terms 5/10, n/60 from Sheboygam. Company. The cost of the merchandise was $8,000. 4 Madison returned $1,000 worth of goods to Sheboygan for full credit. The goods had a cost of $800 to Sheboygan. 9 Madison paid the account in full. Sheboyean's Records