Preparing journal entries for merchandising activitiesperpetual system P1 P2 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 PayableOLB.) July 3Purchased merchandise from OLB Corp. for $15,000 under credit terms of 1/10, n/30, FOB destination, invoice dated July 3. 4At OLB's request, Mason paid $150 cash for freight charges on the July 3 purchase, reducing the amount owed to OLB. 7Sold 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. 10Purchased 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. (Hint: Discounts are not applied to freight and shipping charges.) 11Paid $300 cash for shipping charges related to the July 7 sale to Brill Co. 12Brill 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. 14After negotiations with Rupert Corporation concerning problems with the merchandise purchased on July 10, Mason received a credit memorandum from Rupert granting a price reduction of $2,000. 17Received balance due from Brill Co. for the July 7 sale less the return on July 12. 20Paid the amount due Rupert Corporation for the July 10 purchase less the price reduction granted. 21Sold merchandise to Brown for $11,000 under credit terms of 1/10, n/30, FOB shipping point, invoice https://www.coursehero.com/file/11149620/CH-5/ This study resource was shared via CourseHero.com dated July 21. The merchandise had cost $7,000. 24Brown 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. 30Received Brown's cash payment for the amount due from the July 21 sale. 31Paid OLB Corp. the amount due from the July 3 purchase.