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Journal entries for Geo Company

Prepare journal entries to record the following transactions of Geo Company, which applies the perpetual inventory system (35 points) omit explanationsMay 1. Purchased merchandise from Amok Company for $11,200 under credit terms of 2/15,n/45, FOB destination and invoice dated May 1.May 3. Sold merchandise to Lawton for $8,000 under credit terms of 1/10,n/30, FOB destination, invoice date May 3. The merchandise had a cost of $5,000.May 5. Paid $350 cash for shipping charges related to the May 3 sale.May 6. Returned $2,000 of the merchandise purchased on May 1 to Amok Company.May 7. Lawton returned merchandise form the May 3 sale that had cost Geo $625 and had been sold for $1,000. The merchandise was restored to inventory.May 13. Received the balance due from Lawton.May 14. Paid the amount due to Amok Company.

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