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Purchased merchandise from Arotek Company tor $5,300 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1 At Arotek's request Sheng paid $350

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Purchased merchandise from Arotek Company tor $5,300 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1 At Arotek's request Sheng paid $350 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek Sold merchandise to Laidr Corp for $3,710 under credit terms of 2/10, n/60, FOB destination, invoice dated August 5. The merchandise had cost $2,649 Purchased merchandise from Waters Corporation for $4,600 under credit terms of 1/10, n/45, FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request. Waters paid the $240 shipping Charges and added that amount to the bill Paid $280 cash for shipping charges related to the August 5 sale to Laird Corp. Laird returned merchandise from the August 5 sale that had cost Sheng $441 and been sold for $618. The merchandise was restored to inventory. After negotiations with Waters Corporation concerning problems with the merchandise purchased on August 8. Sheng received a credit memorandum from Waters granting a price reduction of $695 Received balance due from Laird Corp for the August 5 sale toss the return on August 10. Paid the amount due Waters Corporation tor the August 8 purchase less the price reduction granted Sold merchandise to Tux Co fa $3,180 under credit terms of 1/10, n/30, FOB shipping point, invoice dated August 19. The merchandise had cost $2,207 Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a $530 credit memorandum to resolve the issue Received Tux's cash payment tor the amount due from the August 19 sale. Paid Arotek Company the amount due from the August 1 purchase Prepare journal entries to record the above merchandise transactions of Sheng Company, which applies the perpetual inventory system Purchase merchandise from Arotek Company for $5,300.00 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1

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