The Wholesale Company purchases soft drinks from producers and then sells them to retailers. The company began 2019 with merchandise inventory of $120,000 on hand. The company uses the gross method to record cash discounts. During 2019, additional inventory transactions include:

1. Purchases of merchandise on account totaled $620,000, with terms 2/10, n/30.
2. Merchandise with a cost of $20,000 was returned to suppliers for credit.
3. Freight charges paid by Wholesale were $16,000.
4. All purchases on account were paid within the discount period.
5. Sales on account totaled $830,000 before trade discounts of 10%. The cost of soft drinks sold was $550,000.
6. Sales returns on account totaled $5,000 before trade discounts of 10%. The cost of the soft drinks was $2,000. The returned items were of no value. They cannot be resold so they were thrown in the garbage.

Prepare the required journal entries under the perpetual inventory system