Prepare journal entries to record the following merchandise transactions of Miller Equipment, which applies the perpetual inventory system and the gross method of recording invoices.

May 1	Purchased merchandise from Luna Company for $12,700 under credit terms of 2/15, n/45, FOB destination, and invoice dated May 1.
3	Sold merchandise to Walton for $8,000 under credit terms of 1/10, n/30, FOB destination, invoice date May 3. The merchandise had cost $5,000.
5	Paid $350 cash for shipping charges related to the May 3 sale.
6	Returned $2,000 of the merchandise purchased on May 1 to Luna Company.
7	Walton returned merchandise from the May 3 sale that had cost Miller $625 and had been sold for $1,000. The merchandise was restored to inventory.
13	Received the balance due from Walton less the return.
14	Paid the amount due Luna Company.