Part 1: Prepare Rocky Co.'s journal entries for each of the following transactions. Assume that a perpetual inventory method is used. Recording Purchases of Merchandise a. Rocky Co. purchases $60,000 of inventory on account, terms 2/10 net 30 from Tommy Company. b. Rocky Co. returns $6,500 of inventory to Tommy Company from the initial purchase. c. Rocky Co. pays the balance owed to Tommy Company, taking the discount. Recording Sales of Merchandise (new scenario) d. Rocky Co. sells merchandise on account for $26,700 (terms 3/10 net 30) to Sarah Co. The merchandise had cost Rocky Co. $13,050. e. Sarah Co. returns $2,400 of the merchandise to Rocky Co. Assume this returned merchandise had cost Rocky Co. $1,800. f. Sarah Co. pays Rocky Co. the balance owed within 10 days of the sale.