Prepare the journal entries to record the following purchase transactions in Xiaoyan Company's books. Xiaoyan uses a perpetual inventory system.
Jan. 2 Xiaoyan purchased $20,000 of merchandise from Feng Company, terms n/30, FOB shipping point.
4 The correct company paid freight costs of $215.
6 Xiaoyan returned $1,500 of the merchandise purchased on January 2 because it was not needed.
Feb. 1 Xiaoyan paid the balance owing to Feng.