This company uses the perpetual method of accounting for inventory and records the merchandise using the gross method. Make 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 Aug, 30th Smith Co. sells all of this merchandise for $10,000 Prepare the journal entries required to record the above transactions