Maive V O MERCHANDISING AND INVENTORY Merchandising Amount received by seller with FOB Shipping. Edwards Company uses the gross method and a perpetual inventory system Assuming the folowing entries, compute the amount that Edwards Company received on August 12 August 1 August Sold goods costing $4,200 to Butler Company on account, $7,000, terms 3/10, n/30. The goods are shipped EQ Shipping Point, Freight Prepaid by Seller $400. Butler Company returned undamaged merchandise previously purchased on account, $900 August 12 Received the amount due from thutler Company Amount due from Butler Company on August 12, Explanation Check 6/3/20