Prepare journal entries to record. The following merchandising transactions of T & C Surf Company, which applies the perpetual inventory system. Create T-Accounts for each account effected by the first journal entries you have made. Include all balance Information provided, if any, and then include the subsequent effect on those balances after the Journal entries are Included. Purchased merchandise from Candy Company for $6, 850 under credit terms of 1/10. n/30. FOB destination, invoice dated August 1. 5 Sold merchandise to Creamy Corp. for $6, 150 under credit terms of 1/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $4.000. 8 Purchased merchandise from Waters Corporation for $5, 400 under credit terms of 2/10. n/45. FOB shipping point, invoice dated August 8. The invoice showed that at T&C Surf Company's request. Ricky paid the $140 shipping charges and added that amount to the bill. 9 Paid $25 cash for shipping charges related to the August 5 sale to Creamy Corp.. 10 Creamy Corp returned merchandise from the August 5 sale that had cost T&C Surf Company $400 and been sold for $600. The merchandise was restored to inventory. 12 After negotiations with Ricky Corporation concerning problems with the merchandise purchased on Surf Company received a credit memorandum from Ricky granting a price reduction of $600. At Candy Company's request, T & C Surf Company paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Candy Company. Received balance due from Creamy Corp, for the August 5 sale less the return on August 10. Paid the amount due waters Corporation for the August 8 purchase less the price reduction granted. Sold merchandise to Mutz Co. for $4, 600 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2, 300. Mutz requested a price reduction on the August 19 sale because the merchandise did not meet specifications. T & C Surf Company sent Mutz a $600 credit memorandum to resolve the issue. Received Mutt's cash payment for the amount due from the August 19 sale. Paid Candy Company Company the amount due from the August 1 purchase