Instructions Chart of Accounts General Journal Instructions Based on the information below: a b. Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point on December 21. The cost of the merchandise is $2,850. The seller prepays the freight of $75. Buyer returns $700 of merchandise as defective on December 28. The cost of the merchandise is $420. C. Buyer pays within the discount period on December 31. Required: Journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. Refer to the Chart of Accounts for exact wording of account titles. If no entry is required, simply skip to the next transaction.