Problem #1: Merchandising Transactions (20 points) Presented below are questions relating to the merchandising transactions conducted by Benson Sales Company. For each question, prepare the general journal entries required to properly record the transactions described under GAAP assuming the company uses the periodic system to account for inventory and cost of goods sold for financial statement purposes. 1) Benson Sales Company sold merchandise on account for $44,000 to Stabler Company with credit terms of 2/15, n/30. Benson Sales used an independent trucking company to ship the goods to Stabler Company under shipping terms of FOB Shipping Point. The goods were shipped from Benson Sales on November 3, 2017 and were received at Stabler Company on November 8, 2017. (Prepare Journal Entry)

On November 11, 2017, Benson Sales Company accepted goods sold to Stabler Company for $5,100 as returns because the goods were damaged. (Give Journal Entry)

On November 15, 2017, Benson Sales Company received a check from Stabler Company to properly settle its account within the discount period. (Give JE)

On November 10, 2017, the appropriate party received a bill from the independent trucking company for $800 for freight charges related to the delivery of goods from Benson Sales Company to Stabler Company. a) Identify the appropriate party, Benson or Stabler, which is responsible for the freight charges. Provide a brief explanation why you believe that party is responsible for the freight bill? (The party responsible for the freight charge was?)

Prepare the journal entry to record the freight charge and amount due on the books of the appropriate party. (Give JE)

Benson Sales Company purchased merchandise from Amaro Company for $42,000 on account with credit terms of 1/10, n/30. Benson and Amaro agreed to use an independent trucking company to transport the goods under shipping terms of FOB Destination. The goods left Amaro Companys place of business on November 10, 2017 and arrived at Benson Sales Company on November 13, 2017. *The goods left Amaro Companys place of business on November 10, 2017 and arrived at Benson Sales Company on November 13, 2017.* (Give JE)

On November 17, 2017, Benson Sales Company returned merchandise costing $4,500 to Amaro Company because the goods were defective. (Give JE)

On November 20, 2017, Benson Sales Company issued a check to Amaro Company to settle its account within the discount period. (Give JE)

On November 15, 2017, the appropriate party received a bill from the independent trucking company for $1,200 for freight charges related to the delivery of goods from Amaro Company to Benson Sales Company. a) Identify the appropriate party Amaro or Benson, which is responsible for the freight charges. Provide a brief explanation why you believe that party is responsible for the freight bill. (Who was responsible for freight bill?)

b) Prepare the journal entry to record the freight charge and amount due on the books of the appropriate party. (Give JE)