Part II Problems (1 Problems, 26 points) Clancy Company uses the perpetual inventory system and had the following transactions during August. Aug 1: Sold merchandise on credit for S5,000, terms 3/10, n/30. The items sold had a cost of $3,500. (FOB shipping point) Aug 4: Purchased merchandise on credit for $2,600, terms 1/20, n/30 Aug 5: Issued a credit memorandum for $3,000 to a customer who returned merchandise purchased July 20. The returned items had a cost of $2,010 Aug 10: Received payment for merchandise sold August 1 Aug 15: Returned faulty merchandise purchased on August 4 for $600 Aug 18: Paid freight charges of $200 for merchandise ordered last month. (FOB shipping point) Aug 23: Paid for the merchandise purchased August 4 less the portion that was returned. Aug 24: Sold merchandise on credit for S7,000, terms 2/10, n/30. The items had a cost of S4,900. (FOB Destination) Aug 25: Paid freight charges of $500 for delivery of merchandise sold on August 24 Please use the following chart of accounts to prepare journal entries to record these transactions Cash Accounts receivable Merchandise inventory Accounts payable Owner's capital Owner's withdrawals Sales Sales returns and allowances Sales discounts Cost of goods sold Delivery expense Required: Prepare the general journal entries to record these transactions