based on your completion of this preparation guide. You will not have time to complete this guide in class! Part 1: Prepare ABC Co.'s joumal entries for each of the following transactions. Assume that a perpetual inventory method is used. Recording Purchases of Merchandise a. ABC Co. purchases $16,000 of inventory on account, terms 3/10 net 30 from Sampson Company. b. ABC Co. returns $1,800 of inventory to Sampson from the initial purchase. C. ABC Co. pays the balance owed to Sampson Company, taking the discount Recording Sales of Merchandise (new scenario) d. ABC Co. sells merchandise on account for $7,600 (terms 2/10 net 30) to Blue Co. The merchandise had cost ABC Co. $3,750. e. Blue Co. returns $500 of the merchandise to ABC Co. Assume this returned merchandise had cost ABC Co. $300. f. Blue Co. pays ABC Co. the balance owed within 10 days of the sale