Question no. 2 Analyzing and recording merchandise transactionsboth buyer and seller On May 11, Sharjah Co. accepts delivery of $40,000 of merchandise it purchases for resale from Dammam Corporation. With the merchandise is an invoice dated May 11, with terms of 3/10, n/90, FOB shipping point. The goods cost Dammam $30,000. When the goods are delivered, Sharjah pays $345 to Express Shipping for delivery charges on the merchandise. On May 12, Sharjah returns $1,400 of goods to Dammam, who receives them one day later and restores them to inventory. The returned goods had cost Dammam $800. On May 20, Sharjah mails a check to Dammam Corporation for the amount owed. Dammam receives it the following day. (Both Sharjah and Dammam use a perpetual inventory system.) Required: - a. Prepare journal entries that Sharjah Co. records for these transactions. b. Prepare journal entries that Dammam Corporation records for these transactions. Question no. 3 Preparing journal entriesperpetual system 1. On November 1, Al Ain Systems purchases merchandise for $1,500 on credit with terms of 2/5, n/30, FOB shipping point; invoice dated November 1. 2. On November 5, Al Ain Systems pays cash for the November 1 purchase. 3. On November 7, Al Ain Systems discovers and returns $200 of defective merchandise purchased on November 1 for a cash refund. 4. On November 10, Al Ain Systems pays $90 cash for transportation costs with the November 1 purchase. 5. On November 13, Al Ain Systems sells merchandise for $1,600 on credit. The cost of the merchandise is $800. 6. On November 16, the customer returns merchandise from the November 13 transaction. The returned items are priced at $300 and cost $130; the items were not damaged and were returned to inventory. Required: Journalize the above merchandising transactions for Al Ain Systems assuming it uses a perpetual inventory system