Prepare the journal entries in Big's Books to record the following transactions using the perpetual inventory system:
October 1 Big Inc. purchased $5,400 of merchandise on account from Bargain Inc., terms 3/15, n/45,
FOB shipping point. Bargain prepaid the $125 shipping cost and added the amount to the invoice.
October 4 Big sold $950 (cost, $250) of merchandise on account to Wills Corp., terms 2/10
n/45, FOB destination.
October 5 Big paid $25 freight charges to deliver goods to Wills.
October 8 Big returned $600 of the merchandise purchased on October 1 and received a credit.
October 11 Paid Bargain the amount due from the October 1 purchase in full.
October 12 Wills returned $175 (cost, $100) of merchandise from the October 4 sale.
October 13 Received payment in full from Wills for the October 4sale.

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The Answer of Prepare the journal entries in Big's Books to record the following transactions using the perpetual inventory system:
October 1 Big Inc. purchased $5,400 of merchandise on account from Bargain Inc., terms 3/15, n/45,
FOB shipping point. Bargain prepaid the $125 shipping cost and added the amount to the invoice.
October 4 Big sold $950 (cost, $250) of merchandise on account to Wills Corp., terms 2/10
n/45, FOB destination.
October 5 Big paid $25 freight charges to deliver goods to Wills.
October 8 Big returned $600 of the merchandise purchased on October 1 and received a credit.
October 11 Paid Bargain the amount due from the October 1 purchase in full.
October 12 Wills returned $175 (cost, $100) of merchandise from the October 4 sale.
October 13 Received payment in full from Wills for the October 4sale.

Prepare the Journal Entries in Big's Books to Record the Following