Journal Entries for Merchandise TransactionsPerpetual 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., $3,700, terms 2/10, n/30. 5 Paid freight on shipment from Norris, Inc., $190. 7 Sold merchandise to Denton Corporation, $5,100 ($3,700 cost). 7 Paid $270 freight on August 7 shipment and billed Denton for the charges. 9 Returned $900 worth of the merchandise purchased August 1 from Norris, Inc., because it was defective. Norris approved the return. 9 Received $1,100 of returned merchandise ($900 cost) from Denton Corporation. Rockford approved the return. 10 Paid Norris, Inc., the amount due. 14 Purchased from Chambers, Inc., goods with a price of $8,300. Terms 1/10, n/30. 15 Paid freight on shipment from Chambers, Inc., $310. 17 Received the amount due from Denton Corporation. 18 Sold merchandise to Weber, Inc., $9,900 ($6,900 cost). 20 Paid $350 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.