m 1 - 1 a r it 9. Prepare journal entries to record the following merchandising transactions of Shultz Company, which uses the perpetual inventory system and the gross method. May 1 Purchased merchandise from Sanchez Company for $24,000 under credit terms of 2/10,n/30, FOB shipping point. May 3 Paid $350 cash for freight charges on the purchase of May 1. May 9 Purchased merchandise from Brown Company for $12,000 under credit terms of 1/15, n/60, FOB destination. May 10 Returned \$1,000 of merchandise purchased on May 9 from Brown Company for credit. May 11 Paid the balance due to Sanchez Company within the discount period. May 19 Sold merchandise that cost $8,000 to Moore Company for $15,000 under credit terms of 2/10, n/30, FOB shipping point. May 21 Gave a price reduction (allowance) of $2,000 to Moore Company for merchandise sold on May 19 and credited Moore's accounts receivable for that amount. May 24 Paid Brown Company the balance due, net of discount. May 26 Sold merchandise that had cost $4,500 for $7,500 cash. May 29 Received the balance due from Moore Company for the invoice dated May 19, net of discount. 0. Good Earth Company has the following select balances at December 31 . Prepare a multiple-step income statement for the year ended December 31