7 Question 1: Bishops Inc. uses a perpetual inventory system. During April, Bishop's had the following transactions: Apr 3 Purchased $4,000 of merchandise from Rooks Ltd., terms 3/20, n/60, FOB Shipping Point. 6 Returned $600 of the merchandise to Rooks Ltd. from the purchase on April 3. Freight charges of $300 were paid by the appropriate party for the purchase on April 3. 13 Sold goods to Knights Inc. for $2,000, terms 4/15, n/30, FOB Destination. These goods had a cost of $1,200. Freight charges of $350 were paid by the appropriate party for the sale on April 13. 16 Knights Inc. noticed one of the items purchased on Apr 13 had some minor damage. They decided to keep the item for an allowance of $50. 19 Paid Rooks Ltd. the balance due. 21 Knights Inc. returned $600 of the goods purchased on Apr 13 that had a cost of $360 23 Received payment from Knights Inc. 14 Required: Prepare the necessary journal entries to record the above transactions for Bishops Inc. (explanations not required) (24 marks)