using proper journal entry format, prepare the necessary journal entries to record the following transactions, assuming a perpetual inventory system.

Time Taken: 1:07:12 Rhea Hisey: Attempt 1 Question 7 (9 points) Using proper journal entry format, prepare the necessary journal entries to record the following transactions, assuming a perpetual inventory system: Karns Company purchased merchandise on account from Bailey Office Suppliers for $174,000, with terms of 2/10, n/30 Karns paid freight costs of $5,000. During the discount period, Karns returned some merchandise and paid $156,800 as payment in full. Karns uses a perpetual inventory system. Prepare the journal entries that Karns Company made to record: (1) the purchase of merchandise. (2) the payment of freight. (3) the return of merchandise, you will need to calculate. the payment on account. Debits should hug the text box to the left of the space provided, and credit account titles and amounts should be indented. Please skip a line after each transaction