Prepare journal entries to record the following merchandising transactions of Sheng Company. which' applies the perpetual inventory system. (Hint: It will help to identify each receivable and payable: for example, record the purchase on August I in Accounts Payable?Arotek.) Aug. 1 Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. 4 At Arotek's request. Sheng paid $200 cash for freight charges on the August 1 purchase. reduc-ing the amount owed to Abilene. 5 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. 8 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. (Hint: Discounts are not applied to freight and shipping charges.) 9 Paid $125 cash for shipping charges related to the August 5 sale to Laird Corp. 10 Laird returned merchandise from the August 5 sale that had cost Sheng $400 and been sold for $600. The merchandise was restored to inventory. 12 After negotiations with Waters Corporation concerning problems with the merchandise pur-chased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $700