Problem 1 (25 pts.) Santa Clause Inc. purchased merchandise for resale from Elves, Inc. with an invoice price of $24,000 and credit terms of 3/10, 1/60. The merchandise had cost Elves, Inc. $16,000. Santa Clause paid within the discount period. Assume that both buyer and seller use a perpetual inventory system. 1. Prepare entries that the buyer should record for the purchase and the cash payment 2. Prepare entries that the seller should record for the sale and cash collection. Extra Credit 1= +5 pts. Roller Blade Company uses the perpetual inventory system and had the following transactions during October: October 6 Purchased $4,000 of inventory. The seller's credit terms are 2/10, 1/30. October 8 Returned $200 worth of defective units and received full credit. Octoober 15 Paid the amount due, less the returned items. Prepare journal entries to record each of the preceding transactions. Extra Credit 2 = +5 pts. NixIt Company's ledger on July 31, its fiscal year end, includes the following selected accounts that have normal balances (Nix'It uses the perpetual inventory system): Merchandise Inventory...... $37,800 CGS.......... ..$105,600 U. Nix, Capital........ .122,300 Depreciation Exp......10,300 Sales........ .160,200 Salaries Exp..... .32,500 Sales discounts... ..4,700 Miscellaneous Exp....5,000 Sales returns and allowances........6,500 A physical count of its July 31 year-end inventory discloses that the cost of the merchandise inventory still available is $35,900. Prepare the entry to record any inventory shrinkage