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Current Attempt in Progress Prepare journal entries to record the following sales transactions in Sheridan Company's books. Sheridan uses a perpetual inventory system. Jan.2 Sheridan sold $15,000 of merchandise to Xiaoyan Company, terms n/30, FOB shipping point. The cost of the merchandise sold was $5,925. 4 The correct company paid freight costs of $225. 6 Xiaoyan returned $2.000 of the merchandise purchased on January 2 because it was not needed. The cost of the merchandise returned was $790, and it was restored to inventory. Feb. 1 Sheridan received the balance due from Xiaoyan. (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. List all debit entries before credit entries.) 121 .12=1