see the requirements at the end of question

Salem Corp. was incorporated on July 2, 2015 to operate a merchandising business. It uses the perpetual inventory system. All its sales are on account with terms: 2/10, n30. Its transactions during July 2015 are as follows: July 2 Issued share capital for $5,000 cash. 3409 July 2 Purchased $3,500 merchandise on account from Blic Pens Ltd. for terms 2/15, n30. July 2 Sold $2,000 of merchandise on account to Spellman Chair Rentals Inc. (Cost to Salem: $1,200). July 2 Paid transportation cost $100 for the merchandise sold to Spellman Chair Rentals Inc. July 3 Spellman Chair Rentals Inc. returned $200 of defective merchandise (Cost to Salem: $120). This inventory was scrapped. July 5 Purchased equipment from Easton Furniture Led. for $1,000. 31 100 July 9 Received a memo from Blic Fens Ltd. to reduce accounts payable by $100 for defective merchandise included in the July 2 purchase. July 9 Received half the amount due from Spellman Chair Rentals Inc. for the July 2 sale. 2 1009 July 14 Paid Blic Pens Ltd. for the July 2 purchase. July 31 Paid Speedy Transport Co. $350 for transportation to Salem's warehouse during the month (all purchases are fob shipping point). Required: 1. Prepare journal entries to record the July transactions. 2. Calculate the unadjusted ending balance in merchandise inventory. Assume the merchandise inventory is counted at July 31 and assigned a total cost of $2,300. Prepare the July 31 adjusting entry