Exercise 4: Ceres Computer Sales uses the perpetual inventory system and had the following transactions during December. Dec 1 Sold merchandise on credit for $5,000, terms 3/10, n/30. The items sold had a cost of $3,500. 3 Purchased merchandise for cash, $720. 4 Purchased merchandise on credit for $2,600, terms 1/20, n/30. 5 Issued a credit memorandum for $300 to a customer who returned merchandise purchased November 29. The returned items had a cost of $210. 11 Received payment for merchandise sold December 1. 15 Received a credit memorandum for the return of faulty merchandise purchased on December 4 for $600. 18 Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point) 23 Paid for the merchandise purchased December 4 less the portion that was returned. 24 Sold merchandise on credit for $7,000, terms 2/10, n/30. The items had a cost of $4,900. 31 Received payment for merchandise sold on December 24. Required: Prepare journal entries for December transaction. Date Dec 1 3 4 Account Title Debit Credit 5 11 15 18 23 24 31