Prepare journal entries to record the following merchandising transactions, which applies the perpetual inventory system. Refer to the Trial Balance attached. Extend the numbers to the Adjusted TB columns. Refer to Question #2. Extend the numbers to the Income statement columns. If good are shipped FOB destination, the seller is responsible for paying shipping charges and bears the risk of damage or loss in transit. True or False Garza Company had the following activities: Sales $235,000, Sales discounts $12,00; Sales returns and Allowances of $5, 200; Cost of Goods Sold 120,000; Merchandise Inventory 95,000. Required: Calculate Garza Company's Net sales. In a perpetual Inventory system, the Cost of Goods Sold account is used Only when a cash sale of merchandise occurs. only when a credit sale of merchandise occurs. only when a sale of merchandise occurs. whenever there is a sale of merchandise or a return of merchandise sold. Which of the following accounts are classified as assets? Office equipment. Prepaid Rent. Unearned revenue. Office supplies. Land. At 12/31, the balance in a company's Prepaid Account is $600. If expired rent equals $200, Prepare the Adjusted Journal entry to correct the Prepaid Rent account