prepare journal entries to record the following merchandising of sheng Company . Which applies the perpetual inventory system Aug. 1. purchased merchandise form Arotek company for $7,500 under credit terms of 1/10, n/30, POB destination, invoice date August 1. At (text not clear) request. sheng paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotck. Sold merchandise to Laird Corp. for $5,200 under credit terms of 2/10,n/60, FOB destination, invoice date August 5. The merchandise had cost $4,000. purchased merchandise from waters Corporation for $5,400 under credit terms of 1/10,n/45,FOB shipping point. invoice dated August 8. The invoice showed that at sheng's request, water paid the $140 shipping charges and added that amount to the bill. Laird returned merchandise from the August 5 sale that had cost sheng $400 and been sold for $600. The merchandise was restored to inventory