journal entries

Problem A - IV - Journal Entries Prepare the necessary general journal entries for the month of October for Sophia Company for each situation given below. Sophia uses a perpetual inventory system. Oct. 5 Paid cash of $12,000 for operating expenses that were incurred and properly recorded in the previous period. Oct. 8 Purchased merchandise for $25,000 on account. Credit terms: 2/10,n/30; Freight term: FOB Shipping Point. Oct. 10 Paid freight bill of $470 for merchandise purchased on October 8. Oct. 12 Borrowed $10,000 from Admire Bank signing an 8\%, 3-month note. Oct. 15 Paid for merchandise purchased on October 8 . The company takes all discounts to which it is entitled. Oct. 20 Sold merchandise for $16,000 to Tom Green on account. The cost of the merchandise sold was $10,000. Credit terms: 2/10,n/30. Oct. 22 Purchased a 2-year insurance policy for $2,400 cash. Oct. 25 Credited Tom Green's account for $1,000 for merchandise returned by him from the sale on October 20 . The cost of the merchandise returned was $625