-----------------------------------------------------------

Kelly Company had the following merchandise transactions in July. July 2 Purchased $2,400 of merchandise from Harris Suppliers , terms 2/10, n/30, FOB July 2 shipping point. July 3 The correct company paid the freight cost of $200. Returned $400 of the merchandise to Harris as it did not meet specifications. July 9 Paid Harris the balance owing. July 12 Sold three-quarters of the remaining merchandise to ABC company for $3,000, terms 2/10, n/30. July 14 ABC returned part of the merchandise. Kelly's Company gave ABC a credit of $360 and returned the merchandise to inventory. The merchandise had a cost of $200. July 22 Received the correct balance owing from ABC company. Instructions: Prepare Journal entries for Kelly Company assuming it uses a perpetual inventory system. Round to the nearest dollar