Prepare general journal entries to record the following merchandising transactions of Margin Company, which applies the perpetual inventory system and the gross method of recording invoices. Margin Company offers all of its credit customers credit terms of 2/10, n/30. May 1 Purchased merchandise from Craft Company for $7,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated May 1. Purchased merchandise from Bow Company for $10,600 under credit terms 2/05, n/20, FOB destination. Sold merchandise to Sting Company for $5,600, FOB shipping point, invoice dated May 4. The merchandise had cost $3,000. Paid $300 cash for the freight charges on the May 1 purchase of merchandise. May 2 May 3 May 4 Received an $800 credit memorandum from Craft Company for the return of part of the merchandise purchased on May 1. Paid Bow Company the balance due within the discount period. Sold merchandise to Skeet Company for $3,300, FOB shipping point, invoice dated May 8. The merchandise had a cost of $1,500. |Paid Craft Company the balance due within the discount period. Received the balance due from Sting Company within the discount period. Issued a credit $300 credit memorandum to Skeet Company for an allowance on defective merchandise. Received the balance due from Skeet Company within the discount period. May 5 May 6 May 8 May 11 May 13 May 14 May 17