Prepare journal entries to record the following merchandising transactions of Sheng Company, which applies the perpetual inventory system. Purchased merchandise from Arotek Company for $7, 500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. Sold merchandise to Laird Corp, for $5, 200 under credit terms of 2/10, n/60, FOB destination, invoice dated 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, Waters paid the $140 shipping charges and added that amount to the bill. Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp. Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for $600. The merchandise was restored to inventory. After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $700. At Arotek's request, Sheng paid $200 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek. Received balance due from Laird 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 Tux Co. for $4, 800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2, 400. Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $500 credit memorandum to resolve the issue. Received Tux's cash payment for the amount due from the August 19 sale. Paid Arotek Company the amount due from the August 1 purchase. Preparing journal entries for merchandising activities-perpetual system