This company uses the periodic method of accounting for inventory and records merchandise purchases using the gross method. Be sure to date your journal entries. Smith Co. purchases inventory on Aug. 2nd. The invoice is $3,500 and the terms are 2/10 n/30 FOB Shipping Point and the shipping charges are $300. The goods ship on Aug. 3rd and arrive on Aug. 7th. When Smith Co. receives the merchandise they find that $500 of the merchandise has been damaged and the vendor give them a $500 allowance. On August 8th Smith Co. pays the amount due on the invoice. On August 30th Smith Co. sells all of this merchandise for $10,000 Prepare the journal entries required to record the above transactions. This company uses the periodic method of accounting for inventory and records merchandise purchases using the gross method. Be sure to date your journal entries. Smith Co. purchases inventory on Aug. 2nd. The invoice is $3,500 and the terms are 2/10 n/30 FOB Shipping Point and the shipping charges are $300. The goods ship on Aug. 3rd and arrive on Aug. 7th. When Smith Co. receives the merchandise they find that $500 of the merchandise has been damaged and the vendor give them a $500 allowance. On August 8th Smith Co. pays the amount due on the invoice. On August 30th Smith Co. sells all of this merchandise for $10,000 Prepare the journal entries required to record the above transactions.