A. Instructions: Prepare the general journal entries to record these transactions using a perpetual inventory system. (Record all purchases initially at the gross invoice amount). Use a separate sheet of paper for your answer sheet. A company had the following transactions during December: • Sold merchandise on credit for PHPS,000, terms 3/10, n/30. The items sold had a cost of PHP3,500. • Purchased merchandise for cash, PHP720. • Purchased merchandise on credit for PHP2,600, terms 1/20, n/30. Issued a credit memorandum for PHP300 to a customer who returned merchandise purchased on November 29. The returned items had a cost of pup210 • Received payment for merchandise sold on December 1. • Received a credit memorandum for the return of faulty merchandise purchased on December 4 for PHP600. • Paid freight charges of PHP200 for merchandise ordered last month (FOB shipping point). • Paid for the merchandise purchased on December 4, less the portion that was returned. • Sold merchandise on credit for PHP7.000, terms 2/10, n/30. The items had a cost of PHP4,900, • Received payment for merchandise sold on December 24.