Journal Entries for Merchandise Transactions-Perpetual System Rockford Corporation, which began business on August 1, sells on terms of 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for August are given below. Unless noted, all transactions are on account and involve merchandise held for resale. The perpetual inventory system is used Aug. 1 Purchased merchandise from Norris, Inc, $3,400, terms 2/10, n/30 5 Paid freight on shipment from Norris, Inc, $160 7 Sold merchandise to Denton Corporation, $4,800 ($3,400 cost). 7 Paid $240 freight on August 7 shipment and billed Denton for the charges. 9 Returned $600 worth of the merchandise purchased August 1 from Norris, Inc., because it was defective. Norris approved the return. 9 Received $800 of returned merchandise ($600 cost) from Denton Corporation. Rockford approved the return. 10 Paid Norris, Inc., the amount due. 4 Purchased from Chambers, Inc., goods with a price of $8,000. Terms 1/10, n/30. 15 Paid freight on shipment from Chambers, Inc, $280 17 Received the amount due from Denton Corporation. 18 Sold merchandise to Weber, Inc., $9,600 ($6,600 cost) 20 Paid $320 freight on August 18 shipment and billed Weber for the charges. 24 Paid Chambers, Inc, the amount due 28 Received the amount due from Weber, Inc