Three To answer Part A & B of this question, you need to refer to the following (1) chart of accounts and (2) use gross method to record purchase of merchandise. (1) Chart of Account 1. Accounts Payable 2. Accounts Receivable 3. Cash 4. Cost of Goods Sold 5. Freight In 6. Freight Out 7. Inventory 8. Purchase 9. Purchase Discounts 10. Purchase Returns and Allowances 11. Sales Discounts 12. Sales Revenue 13. Sales Returns and Allowances Part A Michelin Jewelers completed the following transactions in April 2021. Michelin Jewelers uses the perpetual inventory system. Prepare journal entries for the transactions. (9 marks) April 2 Michelin purchased merchandise for $20,000. The credit term was 2/10, net 30. Michelin returned $3,400 of defective merchandise from the April 2 purchase. Michelin sold $9,000 of merchandise on account. The credit term was 4 5 10 15 18 3/15, net 60. Michelin's cost for the merchandise sold was $5,500. Michelin paid the balance for the merchandise purchased on April 2. Michelin's customer returned $3,000 of the merchandise sold on April 5. Michelin's cost for the merchandise returned was $1,750. Michelin received a payment for the balance of the April 5 transaction