Please be sure to include any explantions for any journal entries.

al entries to record the following merchandising transactions of Sheng Company, which Problem 5-2A applies the perpetual inventory system. Hint: It will help to identify each receivable and payable; for Preparing journal entrie example, record the purchase on August 1 in Accounts Payable-Arotek.) for merchandising g Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30. activities- perpetual FOB destination, invoice dated August I system s Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10,n/60, FOB destination. PI P2 8 Purchased merchandise from Waters Corporation for $5,400 under credit terms of 1/10, n/45, invoice dated August 5. The merchandise had cost $4,000 FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request, Waters paid the $140 shipping charges and added that amount to the bill.Hint: Discounts are not ap- plied to freight and shipping charges.) 9 Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp 10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for Ex125 Check Aug 9.Or. Deliv $600. The merchandise was restored to inventory After negotiations with Waters Corporation concerning problems with the merchandise pur- chased on August 8, Sheng received a credit memorandum from Waters granting a price reduc- tion of $700. 12