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Purchased merchandise from Arotek Company for $7,500 under credit terms of 1/10, n/30, FOB destination, invoice dated August 1. At Arotek's request, Sheng paid $350 cash for freight charges on the August 1 purchase, reducing the amount owed to Arotek. Sold merchandise to Lard Corp, for $5,250 under credit terms of 2/10, n/50, FOB destination, invoice dated August 5. The merchandise had cost $3,749. Purchased merchandise from Washers Corporation for $6,800 under credit terms of 1/10, n/45. FOB shipping point, invoice dated August 8. The invoice showed that at Sheng's request, Waters paid the $240 shipping changes and added that amount to the ball. Paid $120 cash for shipping charges related to the August 5 safe to Laird Corp. Laid returned merchandise from the August 5 sale that had cost Sheng $625 and been sold for $875. The merchandise was restored to inventory. After negotiations with Western Corporation concerning problems with the merchandise purchased on August 8, Sheng received a credit memorandum from Waters granting a price reduction of $1,027. Received balance due from Laird Corp. for the August 5 sale less the return on August 10. Paid the amount due Waters Corporation for the August 8 purchase less the price reduction granted. Sold merchandist to Tux Co, for $4,500 under credit terms of 1/10, n/00 shipping point, invoice dated August 19. The merchandise had cost $3,123. Tux requested a price reduction on the August 19 sale because the merchandise did not meet specifications. Sheng sent Tux a 5750 credit memorandum to resolve the issue. Received Tux's cash payment for the amount due from the August 19 sale. Paid Arock Company the amount due from the August 1 purchase

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