Current Attempt in Progress Prepare the journal entries to record the following purchase transactions in Sheridan Company's books. Sheridan uses a perpetual inventory system. Jan. 2 Sheridan purchased $20,900 of merchandise from Feng Company, terms n/30, FOB shipping point. 4 The correct company paid freight costs of $225. 6 Sheridan returned $2,400 of the merchandise purchased on January 2 because it was not needed. Feb. 1 Sheridan paid the balance owing to Feng. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Jan. 24 Merchandise Inventory 20.900 Accounts Payable 20,900 (To record purchase on account.) Jan. 4 4 No Entry 0 No Entry 0 Date Account Titles and Explanation Debit Credit Jan. 24 Merchandise Inventory 20.900 Accounts Payable 20,900 (To record purchase on account.) Jan.4 No Entry 0 No Entry 0 (To record cash payment of freight.) Jan. 6 A Accounts Payable Merchandise Inventory (To record purchase return.) Feb. 14 (To record payment on account.)