Question 2. (3 Marks) The Seif Company had the following trial balance for October 2020: Cash 220,000 Accounts receivable 40,000 Merchandise Inventory 300,000 Accounts payable 120,000 Capital 200,000 Sales 160,000 Cost of goods sold 80,000 Total 560,000 560,000 During November 2020 the following financial data is available: Nov 5 The Company paid AED 80,000 of the account payable that relates to a purchase made October 29, 2020 with terms 3/10 net 30. Nov 12 The Company sold merchandise to Wafa Company for AED 140,000 with a cost AED 90,000 with terms 4/10 net 30. Nov 14 Cost of transportation of the November 2 sale amounted to AED 20,000. Nov 22 The Company received 45% of the invoice amount from the November 12 sale. Required: 1. Prepare journal entries to record the above transactions Answer Nov 5 The Company Paid AED 80,000 of the account payable that relates to a purchase made October 29, 2020 with terms 3/10 net 30. Nov 12 The Company sold merchandise to Wafa Company for AED 140,000 with a cost AED 90,000 with terms 4/10 net 30. Nov 14 Cost of transportation of the November 2 sale amounted to AED 20,000 Nov 22 The Company received 45% of the invoice amount from the November 12 sale