Prepare journal entries to record the following sales transactions in Crane Companys books. Crane uses a perpetual inventory system. Jan. 2 Crane sold $11,000 of merchandise to Xiaoyan Company, terms n/30, FOB shipping point. The cost of the merchandise sold was $4,345. 4 The correct company paid freight costs of $195. 6 Xiaoyan returned $1,100 of the merchandise purchased on January 2 because it was not needed. The cost of the merchandise returned was $430, and it was restored to inventory. Feb. 1 Crane received the balance due from Xiaoyan.