Johns Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May:

1. Johns purchased merchandise on account for $6,800. Freight charges of $1,200 were paid in cash.
2. Johns returned some of the merchandise purchased in (1). The cost of the merchandise was $1,500 and Johns account was credited by the supplier.
3. Merchandise costing $3,700 was sold for $7,000 in cash.

Required: Prepare the necessary journal entries to record these transactions.

• Record the merchandise purchased on account for $6,800.
• Record the freight charges of $1,200.
• Record the return of merchandise costing $1,500.
• Record the sale of merchandise for $7,000 in cash.
• Record the cost of goods sold for $3,700.