SHORT ANSWER. Write the word or phrase that best completes each statement or answers the question. 5) Michelin Jewelers completed the following transactions in April 2009. Michelin Jewelers 5) uses the perpetual inventory system. Prepare journal entries for the transactions. April 2 Michelin purchased merchandise for $20,000. The terms were FOB shipping point, 2/10 n/30. Michelin paid the transportation costs of $1,200. Michelin returned $3,400 of defective merchandise from the April 2 purchase. 5 Michelin sold $9,000 of merchandise on account. The terms were FOB shipping point 3/15 n/30. Michelin's cost for the merchandise sold was $5,500. 10 Michelin paid the balance for the merchandise purchased on April 2. 15 Michelin's customer returned $3,000 of the merchandise sold on April 5. Michelin's cost for the merchandise returned was $1,750. Michelin received a payment for the balance of the April 5 transaction. 4 19