Problems: 1. The following transactions relate to Warren Company. Terms of sale are 2/10, n/30. The company uses the perpetual inventory system. Jan 1 Purchased merchandise on account from Jones Company for $7,500. Terms 2/10, n/30, freight prepaid and added to the invoice, $100. 2 Sold merchandise on account from King Company, $500. The cost of the merchandise was $350. 3 Bought merchandise on account from Mary Company, $600, terms 1/10,n/30, freight prepaid and added to the invoice, $20. 10 Sold merchandise to Craig, Inc. $3,000. The cost of the merchandise was $2000. 13 Bought merchandise on account from Paul & Sons, $2500; terms 2/10,n/30. Freight cost $110 (FOB shipping point). Sold merchandise on account to Rossum Store, $900. The merchandise cost $800. Issued a credit memo to Rossum Store for merchandise returned, $100. The cost of the merchandise is $75. Bought merchandise on account from Victor Stores for $2450, terms 2/10. n/30 Freight charges of $90 was prepaid and added to the invoice. Received a credit memo for the merchandise returned to Victor Stores for $150. 30 Paid Victor Stores the amount due. 18 20 26 28 Required: Record the transactions in the general journal. 2. The following data were taken from the accounts of Flute Hardware, a small retail business. Determine the gross profit. Sales Sales Returns and Allowances Sales discount Merchandise inventory, January 1 Purchases during the period Purchases returns and allowances during the period Purchases discounts taken during the period Freight-in on merchandise purchased during the period Merchandise inventory, December 31 $120,000 900 650 35,000 77,600 4,100 2,300 1,250 32,000