Prepare journal entries to record the following merchandising transactions of Margin Company which applies the perpetual inventory system and the gross method of recording invoices. Margin Company offers all of its credit customers credit terms of 2/10,n/30. May 1 Purchased merchandise from Craft Company for $7,800 under credit terms of 1/10, n/30, FOB shipping point, invoice dated May 1. May 2 Purchased merchandise from Bow Company for $10,600 under credit terms 2/05. n/20, FOB destination May 3 Sold merchandise to Sting Company for $5,600,FOB shipping point, invoice dated May 4. The merchandise had cost $3,000. May 4 Paid $300 cash for the freight charges on the May 1 purchase of merchandise. May 5 Received an $800 credit memorandum from Craft Company for the return of part of the merchandise purchased on May 1. May 6 Paid Bow Company the balance due within the discount period. May 8 Sold merchandise to Skeet Company for $3,300, FOB shipping point, invoice dated May 8. The merchandise had a cost of $1,500. May 11 Pald Craft Company the balance due within the discount period. May 13 Received the balance due from Sting Company within the discount period. May 14 Issued a credit $300 credit memorandum to Skeet Company for an allowance on defective merchandise. May 13 Received the balance due from Sting Company within the discount period. May 14 Issued a credit $300 credit memorandum to Skeet Company for an allowance on defective merchandise. May 17 Received the balance due from Skeet Company within the discount period. PREPARE JOURNAL ENTRIES USING THE FOLLOWING FORMAT: DATE ACCOUNTS DEBIT CREDIT HTML Editor BIVA - A - IX E 33 7 1 x x, - Vw the V TT: 12pt E Paragraph (