Journal Entries for Merchandise Transactions-Perpetual System Webster Company was established on July 1. Its sales terms are 2/10, n/30. Credit terms for its purchases vary with the supplier. Selected transactions for the first month of operations are given below. Unless noted, all transactions are on account and involve merchandise held for re Webster Company uses the perpetual inventory system. sale. July 1 Purchased goods from Dawson, Inc, $2,500, terms 1/10, n/30. 2 Purchased goods from Penn Company, $4,800, terms 2/10, n/30. 3 Paid freight on shipment from Dawson, $160 5 Sold merchandise to Ward, Inc., $1,900 ($1,575 cost). 5 Paid freight on shipment to Ward, Inc., $120. (Hint-debit Delivery Expense). g Returned $600 worth of the goods purchased July 1 from Dawson, Inc, because some goods were damaged. Dawson approved the return 9 Received returned goods from Ward, Inc, worth $300 (s260 cost). 10 Paid Dawson, Inc, the amount due. 10 Purchased goods from Dorn Company with a list price of $3,00. Terms 2/10, n/30. 11 Paid freight on shipment from Dorn Company, $190. 15 Received the amount due from Ward, Inc. 15 Sold merchandise to Colby Corporation, $3,800 ($3,000 cost). 16 Mailed a check to Penn Company for the amount due on its July 2 invoice. 18 Received an allowance of s200 from Dorn Company for defective merchandise purchaed on july 1d 19 Paid Dorn Company the amount due 25 Received the amount due from Colby Corporation