Purchased merchandise from Blue Company under the following terms:
$3,600 price, invoice dated April 2, credit terms of 2/15, n/60, and FOB
shipping point.
3 Paid $200 for shipping charges on the April 2 purchase.
4 Returned to Blue Company unacceptable merchandise that had an invoice price of $600.
17 Sent a check to Blue Company for the April 2 purchase, net of the discount and the returned merchandise.
18 Purchased merchandise from Fox Corp. under the following
terms: $7,500 price, invoice dated April 18, credit terms of 2/10, n/30,
and FOB destination.
21 After negotiations, received from Fox a $2,100 allowance on the April 18 purchase.
28 Sent check to Fox paying for the April 18 purchase, net of the discount and allowance.
Required:
1 Prepare journal entries to record each of the above
merchandising transactions assuming that the periodic inventory system
is used.
