On May 11, Smythe Co. accepts delivery of $37,500 of merchandise it purchases for resale from Hope Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Hope $25,125. When the goods are delivered, Smythe pays S520 to Express Shipping for delivery charges on the merchandise. On May 12, Smythe returns $2,080 of goods to Hope who receives them one day later and restores them to inventory. The returned goods had cost Hope $1,394. On May 20, Smythe mails a check to Hope Corporation for the amount owed. Hope receives it the following day. (Both Smythe and Hope use a perpetual inventory system.) 1. Prepare journal entries that Smythe Co. records for these transactions. Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) Date General Journal Debit May 11 Purchased merchandise on credit. (Click to select) (Click to select) May 11 Paid shipping charges on purchased merchandise (Click to select) (Click to select) May 12 Returned unacceptable merchandise (Click to select) (Click to select) May 20 Paid balance within the discount period (Click to select) (Click to select) Click to select) 2. Prepare journal entries that Hope Corporation records for these transactions. (Round your answers to the nearest dollar amount. Omit the "$" sign in your response.) General Journal Debit Date May 11 Sold merchandise on account. Click to select) (Click to select) May 11 To record cost of sale Click to select) (Click to select) May 13 Accepted a return from a customer Click to select) (Click to select) May 13 Returned goods to invento Click to select) (Click to select) May 21 Collected account receivable (Click to select) (Click to select) (Click to select)