QUESTION 3 Partially correct Mark 106 oo out of 110 00 Flag question Journal Entries for Merchandise Transactions--Perpetual system Rockford Corporation, which began business on August 1, sells on terms of 2/10. n/30. Credit terms for its purchases vary with the supplier. Selected transactions for August are given below. Unless noted, all transactions are on account and involve merchandise held for resale. The perpetual inventory system is used. Aug. 1 Purchased merchandise from Norris, Inc., $4,000, terms 2/10, n/30. 5 Paid freight on shipment from Norris, Inc., $220. 7 Sold merchandise to Denton Corporation, $5,500 ($4,100 cost). 7 Paid $300 freight on August 7 shipment and billed Denton for the charges. Returned $800 worth of the merchandise purchased August 1 from Norris, Inc., because it was defective. Norris approved the return. a Received $750 of returned merchandise ($500 cost) from Denton Corporation. Rockford approved the return