PROBLEMS: 1. Prepare journal entries to record the following merchandising transactions of JoJo Company, Inc., which applies the perpetual inventory system. Dec 1 Dec 4 Dec 7 Dec 8 Dec 9 Dec 9 Purchased merchandise from Smith Company for $17,500 under credit terms of 3/10, n/30. Purchased merchandise from Low Company for $20,200 under credit terms 2/15, n/20. Paid $500 cash for the freight charges on the Dec 1 purchase of merchandise. Returned $10,000 of inventory to Smith Company from the merchandise purchased on Dec 1. Paid Low Company the balance due within the discount period. Paid Smith Company the balance due within the discount period