LO2, 3 PS-2B. Journal Entries for Merchandise Transactions-Perpetual System Webster Company was estab lished on July 1. Its sales terns are 2/10, 1/30 Credit terms for its purchases vary with the supplier. Se lected transactions for the first month of operations are given below. Unless noted, all transactions are on account and involve merchandise held for resale. Webster Company uses the perpetual inventory system July | Purchased goods from Dawson, Inc., $2,500; terms 1/10, 1/30. 2 Purchased goods from Penn Company, $4,500, terms 2/10, 1/30. 3 Paid freight on shipment from Dawson, $300 5 Sold merchandise to Ward, Inc., S1,400 ($1,100 cost). 5 Paid freight on shipment to Ward, Inc., $90. (Hint: debil Delivery Expense) 8 Returned $500 worth of the goods purchased July I from Dawson, Inc., because some goods were damaged. Dawson approved the return. 9 Received returned goods from Ward, Inc, worth $200 ($150 cost). 10 Paid Dawson, Inc., the amount due. 10 Purchased goods from Dom Company with a list price of $2,600. Terms 2/10, 1/30. 11 Paid freighton shipment from Dor Company, SISO, 15 Received the amount due from Ward, Inc. 15 Sold merchandise to Colby Corporation, $3,200 ($2,000 coll) Mailed a check to Penn Company for the amount due on its July 2 invoice. 18 Received an allowance of $200 from Dom Company for defective merchandise purchased on July 10, 19 Paid Dorn Company the amount due. 25 Received the amount due from Colby Corporation. Required Prepare the necessary journal entries for the Webster Company