5. Based on the information below, journalize the entries for the Seller and the Buyer. Both use a perpetual inventory system. (a) Seller sells Buyer on account merchandise costing $245 for $645, terms 2/10, net 30 , FOB destination. The freight charge is $45. (b) Buyer returns as defective $145 worth of the $645 merchandise recelved. The seller's cost is $70. Seller 6. The bank statement for Gatlin Co. indicates a balance of $7,735.00 on June 30,2010 . After the journals for June had been posted, the cash account had a balance of $4,098.00. Prepare a bank reconciliation and required journal entries on the basis of the following reconciling items: (a) Cash sales of $742 had been erroneously recorded in the cash receipts journal as $724. (b) Deposits in transit not recorded by bank, $425.00. (c) Bank debit memo for service charges, $35.00. (d) Bank credit memo for note collected by bank, $2,475 including $75 interest. (e) Bank debit memo for $256.00 NSF (not sufficient funds) check from Janice Smith, a customer. (f) Checks outstanding, $1,860.00