Prepare the journal entries to record these transactions on NW Wholesale Company's books. NW
Wholesale Company uses a periodic inventory system.
Feb. 5 NW Wholesale sells $12,000 of merchandise to Allied, terms 2/10, n/30, FOB shipping point.
6 The correct company paid freight costs of $110.
8 Allied returned $1,000 of the merchandise purchased on February 5.
The inventory is not damaged and can be resold. NW Wholesale restores it to inventory.
11 NW Wholesale collects the balance due from allied.