Tout References Mailings Review View Help can contain viruses. Unless you need to edit, it's safer to stay in Protected View. Enable Editing august Birkey returned $800 of the merchandise to Nelson. The cost of the returned merchandise was $600. August 10 Birkey paid Nelson $3000 of the amount owed. Rugust 31 Birkey paid Nelson the balance due. Problem 8-7 Murphy Hardware bought 800 3-cubic-feet bags of organic peat moss from Mitchell Garden Distributors on account. Each bag cost $6.25. Murphy paid Reed Trucking $275 to have the bags of peat moss shipped to its warehouse. Murphy returned 20 bags that were defective and paid for the remainder. Murphy uses the perpetual inventory system. Prepare the journal entry to record the purchase of 800 bags of peat moss. Prepare the journal entry to record the payment of freight. Prepare the journal entry to record the return of 20 defective bags. Prepare the journal entry to record payment for the purchase. No discount was offered. 1. 2. 3. 4 Dros o O 55-F D 03 18