Wilson Company uses a perpetual inventory system. Record the journal entries for following transactions related to its purchase of merchandise. Oct. 1 Purchased merchandise from Davis Company for $40,000 with terms 3/10, n/30 5 Paid $800 for freight on the October 1st purchase. 7 Returned merchandise costing $6,800 for full credit. On October 10, Wilson paid Davis for the merchandise purchased on October 1. Compute the cost of the inventory purchased on October 1. Record the journal entries for following transactions related to Wilson's sale of merchandise. Oct. 12 Sold merchandise to Justice Jerseys at a selling price of $28,000; terms 2/10, n/30. The goods cost Wilson $16,800. 15 Received a return of $4,000 of the merchandise Justice purchased on the 12th. The returned items had cost Wilson $2,400. 20 Collected Justice's account balance in full. On October 20, Wilson collected Justice's account balance in full. Compute Wilson's net sales for the merchandise sold to Justice Jerseys on October 12.