John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: 1. John's purchased merchandise on account for $6,900. Freight charges of $1,250 were paid in cash. 2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,550 and John's account was credited by the supplier. 3. Merchandise costing $3,750 was sold for $7,100 in cash. Required: Prepare the necessary journal entries to record these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list 1 Record the merchandise purchased on account for $6,900. 2 Record the payment of freight charges for $1,250. 3 Record the return of merchandise purchased on account costing $1,550. 4 Record the sale of merchandise for $7,100 in cash. 5 Record the cost of goods sold for $3,750. Note: -journal entry has been entered X Credit