Prepare the journal entries to record these transactions on Sheridan Company's books. Sheridan Company uses a periodic inventory system. Feb. 5 6 8 11 Sheridan purchased $12,000 of merchandise from NW Wholesale Company, terms 2/10, n/30, FOB shipping point. The correct company paid freight costs of $160. Sheridan returned $1,400 of the merchandise purchased on February 5. Sheridan paid the balance due to NW Wholesale.
