John's Specialty Store uses a perpetual inventory system. The following are some inventory transactions for the month of May: John's purchased merchandise on account for $5,200. Freight charges of $400 were paid in cash. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $700 and John's account was credited by the supplier. Merchandise costing $2,900 was sold for $5,400 in cash. Prepare the necessary journal entries to record these transactions.