Journal Entries for Merchandise TransactionsPerpetual System Cushing Distributing Company uses the perpetual inventory system. Cushing had the following transactions related to merchandise during the month of June: June 1 Purchased on account merchandise for resale for $13,000; terms were 2/10, n/30. 3 Paid $850 cash for freight on the June 1 purchase. 7 Returned merchandise costing $1,000 (part of the $13,000 purchase). 10 Paid for merchandise purchased on June 1. 13 Sold merchandise on account costing $12,000 for $15,000; terms were 2/10, n/30. 16 Customer returned merchandise costing $1,150 that had been sold on account for $1,400 (part of the $15,000 sale). 22 Received payment from customer for merchandise sold on June 13. Required Prepare journal entries for each of the transactions for the Cushing Distributing Company. GENERAL JOURNAL Date Description Debit Credit June 1 0 $ 0 $ 0 0 Purchased merchandise with 2/10, n/30 terms. 3 0 0 0 0 Paid freight on June 1 purchase. 7 0 O O 0 Returned merchandise from June 1 purchase. 10 0 0 0 o oo Cash Paid for merchandise purchased on June 1 within the discount period. 13 0 o o 0 To record revenue from sale of merchandise. 13 0 o o 0 To record cost of merchandise sold and to reduce inventory. 16 0 0 0 0 To record sales return by customer. 16 0 o o 0 To record cost of goods returned by customers. 22 Cash 0 0 - 0 0 0 0 To record receipt of cash from customer within the discount period