Merchandising Transactions: Perpetual Inventory System P3. Fulco Company engaged in the following transactions in March 2014: Mar. 7 Sold merchandise on credit to James William, terms n/30, FOB shipping point, $3,000 (cost, $1,800 ). 8 Purchased merchandise on credit from Leverage Company, terms n/30, FOB shipping point, $6,000. 9 Paid Leverage Company for shipping charges on merchandise purchased on March 8, $254. 10 Purchased merchandise on credit from Rourke Company, terms 8/30,FOB shipping point, $9,600, including $600 freight costs paid by Rourke. 14 Sold merchandise on credit to Decpak Soni, terms n/30,FOB shipping point, $2,400 (cost, $1,440 ). 14 Retumed damaged merchandise received from Leverage Company on Narch 8 for credit, $600. 17 Keceived check from James William for his purchase of March 7. 19 Sold merchandise for cash, $1,800 (cost, $1,080 ). 20 Paid Rourke Company for purchase of Manch 10. 21 Paid Leverage Company the balance from the transactions of March 8 and March 14. 24 Accepted from Decpak Soni a retum of merchandise, which was put back in inventory, \$200 (cost, \$120). REQUIRED 1. Prepare journal entries to record the cransactions, assuming use of the perpetual inventory system. (Hint: Reter to the TriLevel Problem fearure.) 2. ACCOUNTING CONNECTION > Receiving cash rebates from mppliet baked on the past year's purchases is a common practice in some industrics. If, at the end of the year, Fulco receives rebates in eash from a supplier, should these cash rebutes be reported as revenue? Why or why not