Thorsten Company, a trendy clothing retailer, had the following transactions in March: March 2 Purchased merchandise from Sabine Company under the following terms: $1,800 invoice price, 2/15, 1/60. FOB factory. (The cost of the merchandise to Sabine Company was $990.) 3 Paid UBS Shipping $125 for shipping charges on the purchase of March 2. 4 Returned to Sabine Company unacceptable merchandise that had an invoice price of $300 (and a cost to Sabine of $165). Sabine returned the merchandise to inventory. 17 Sent a cheque to Sabine Company for the March 2 purchase, net of the discount and the returned merchandise. Required Assuming both Thorsten and Sabine use a perpetual inventory system: a. Present the journal entries Thorsten Company should record for these transactions. b. Present the journal entries Sabine Company should record for these transactions. Analysis Component: Who should be insuring the merchandise during shipping: Thorsten or Sabine? Explain