Prepare the journal entries to record the following purchase transactions in Oriole Company’s books. Oriole uses a perpetual inventory system. Jan. 2 Oriole purchased $20,300 of merchandise from Feng Company, terms n/30, FOB shipping point. 4 The correct company paid freight costs of $295. 6 Oriole returned $2,100 of the merchandise purchased on January 2 because it was not needed. Feb. 1 Oriole paid the balance owing to Feng.