Prepare the journal entries to record these transactions on Jerel Company’s books using a periodic inventory system.
(a) On March 2, Jerel Company purchased $900,000 of merchandise from McNeal Company, terms 2/10, n/30.
(b) On March 6, Jerel Company returned $130,000 of the merchandise purchased on March 2.
(c) On March 12, Jerel Company paid the balance due to McNeal Company.