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Question - John's Specialty Store uses a perpetual inventory System. The following are some inventory transactions for the month of May 2016:
1. John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.
2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $600 and John's account was credited by the supplier.
3. Merchandise costing $2,800 was sold for $5,200 in cash.
Required: Prepare the necessary journal Entries to record these transactions.
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