please write the explanation as well

4. PERIODIC SALES "BE5.18 ( (LO7 7) AP Prepare the journal entries to record these transactions on NW Wholesale Company's books. NW Wholesale Company uses a periodic inventory system. Feb. NW Wholesale sells $12,000 of merchandise to Allied Company, terms 2/10,n/30, FOB 5 shipping point. 6 The correct company paid freight costs of $110. 8 Allied returned $1,000 of the merchandise purchased on February 5 . The inventory is not damaged and can be resold. NW Wholesale restores it to inventory. 11 NW Wholesale collects the balance due from Allied