Prepare Journal entries to record the following merchandise transactions of Star Company, which applies the periodic inventory system.

July 1 - Purchased merchandise from Bass Company for $20,000 under credit terms of 2/10, n/60, FOB shipping point.

July 2 At Basss request Star paid $500 for fright Charges on July 1 purchase reducing the amount owed to Bass.

July 3 Sold merchandise for Shein Comp for $4,200 under credit terms of 2/10, n/60, FOB destination. The merchandise had cost $1,900.

July 4 Purchased merchandise from Woods Corporation for $8000 under credit terms of 2/10, n/60, FOB shipping point. The invoice showed that at Stars request Woods Corppaid the $350 shipping charges and added the amount to the bill

July 5 Paid $ 200 for shipping charges relating to the Julysale to Shein Comp

July 6 Shein returned merchandise from the July 3 sale that had cost Star $650 and been sold for $900. The merchandise was restored to the company

July 7 After negotiations with Woods Corp concerning problems with the merchandise purchased on July 4 Starreceived a credit memorandum from Wood Granting a price reduction of $800

July 8 - Received the balance due from Shein Co for July 3sale less the return on July 3.

July 9 Paid the amount due to Woods Corp for the July 4purchase less the reduction granted

July 10 Paid Bass Company the amount due from the July 1 purchase