Spring 2018 Problem 1 Required: Prepare journal entries for the following merchandising transactions of Murdock Company which applies the perpetual inventory system to the attached journal. If the transaction stipulates terms identify them in the explanation. If the transaction requires Accounts Receivable identify the customer. If the transaction requires Accounts Payable identify the vendor. 2017 May 5 Purchased merchandise on account from Li Co. for $ 95,000, under credit terms 2/10 n 30, FOB Shipping Point. The invoice was dated May 5. 6 Received a S 2,600 credit memorandum from Li Co. for a return of 7 Paid S 345 cash for the shipping cost from the purchase on May S 9 Sold merchandise on account to Nickerson Co. for $ 52,000; terms 3/15 10 Nickerson Co. returmed $ 4,000 of the merchandise we sold to them on 15 Paid Li Co. for the purchase on May 5 18 Sold merchandise for cash $ 16,000. The cost of the merchandise is a portion of the merchandise purchased on May 5. n 60. The cost of the merchandise was S 27,000, FOB Destination. May 9. The cost of the merchandise returned was $ 2,100. $7,000 Paid Moyer Courier Service $ 160 for merchandise delivered from the sale to Nickerson earlier in the month. 22 Received a check for the amount due from Nickerson Co. for the sale on May 9. 24 30 Paid cash for the May telephone bill, S 180