Name C 201 - Spring 2020 im 2 - Chapters 5-7 - Part 2 sing transactions of Abbott's, which uses the help to identify each receivable and payable Prepare the lournal entries to record the following merchandising transactions of Abbottle perpetual inventory system and the gross method. Hint: It will help to identify each by customer or vendor name; and to use T-accounts to record and adjust balances due to each vendor (30 Points). 1-Jan Purchased merchandise from Pico Company for $7,000 under credit terms 2/10, n/30 FOB shipping point 2-Jan Paid $300 cash for freight charges on the January 1 purchase from Pico. 4-Jan Returned $1,000 of merchandise purchased on January 1 from Pico. 7-Jan After negotiations with Pico concerning problems with the purchase on January 1, Abbott's received a price reduction from Pico of $500 off the goods purchased. 10-Jan Paid the amount due Pico for the January 1 purchase; less the return on January 4th and the price allowance on January 7th. 12 Jan Sold merchadise to Solana for $10,000 under credit terms 2/15, n/30, FOB destination. The merchandise had cost $6,000. 16-Jan Paid $200 cash for shipping charges related to the January 12th sale to Solana. 20-Jan Solana returned merchandise from the January 12th sale that had sold for $1,000 and no a cost to Abbott's of $600. The merchadise was restored back into inventory 21 Jan Solana requested a price reduction on the January 12th sale because the merch not meet specifications. Abbott's gave a price allowance of $800 to Solana 26-Jan Received payment from Solana for the amount due from the Janury 12th San return on January 20th and the allowance on January 21st