Prepare journal entries to record the following merchandising transactions of Mason Company, which applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable, for example, record the purchase on July 3 in Accounts Payable-OLB.) July 3 Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3. 4 AL OLB's request. Mason paid $150 cash for freight charges on the July 3 purchase, reducing the amount owed to OL.B. 7 Sold merchandise to Brill Co, for $11,500 under credit terms of 2/10, n/60, FOB destination. invoice dated July 7. The merchandise had cost $7,750 10 Purchased merchandise from Rupert Corporation for $14,200 under credit terms of 1/10, n/45. FOB shipping point, invoice dated July 10. The invoice showed that at Mason's request, Rupert paid the $500 shipping charges and added that amount to the bill. (Recall: Discounts are not applied to freight and shipping charges.) 11 Paid $300 cash for shipping charges related to the July 7 sale to Brill Co. 12 Brill returned merchandise from the July 7 sale that had cost Mason $1,450 and been sold for $1.850. The merchandise was restored to inventory, 14 After negotiations with Rupert Corporation concerning problems with the merchandise pur- chased on July 10, Mason received a credit memorandum from Rupert granting a price reduc- tion of $2.000. 17 Received balance due from Brill Co. for the July 7 sale less the return on July 12. 20 Paid the amount due Rupert Corporation for the July 10 purchase less the price reduction granted. 21 Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point. invoice dated July 21. The merchandise had cost $7,000. Problem 5-28 Preparing journal entries for merchandising activities- perpetual system 24 Brown requested a price reduction on the July 21 sale because the merchandise did not meet specifications. Mason sent Brown a credit memorandum for $1,300 to resolve the issue. 30 Received Brown's cash payment for the amount due from the July 21 sale. 31 Paid OLB Corp, the amount due from the July 3 purchase. Pi P2 Check July 17. Dr. Cash 59.457 July 20. Cr. Cash $12.578 Jy 30. Dr. Cash $9.40)