$($Appendix $6$A$)$ Recording Purchase Transactions

Mathis Company and Reece Company use the periodic inventory system. The following transactions occurred during the month of April:

a$.$ On April $1,$ Mathis purchased merchandise on account from Reece with credit terms of $\frac{2}{10},\frac{n}{30}.$ The selling price of the merchandise was $$3,200,$ and the cost of the merchandise sold was $$2,450.$

b$.$ On April $1,$ Mathis paid freight charges of $$100$ cash to have the goods delivered to its warehouse.

c$.$ On April $8,$ Mathis returned $$1,000$ of the merchandise, which had originally cost Reece $$700.$

d$.$ On April $10,$ Mathis paid Reece the balance due.

Required:

Prepare the journal entry to record the April $1$ purchase of merchandise and payment of freight by Mathis. If an amount box does not require an entry, leave it blank.

April $1$ :

$($Purchased inventory on account$)$

April $1$ Purchase Returns and Allowances $x$

$$

$($Paid cash for shipping fees$)$

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In a periodic inventory system, journal entries are made to temporary accounts $($purchases$,$ purchase discounts, purchase returns and allowances, and transportation$-$in$)$ instead of directly to the inventory account.

Prepare the journal entry to record the April $8$ return of merchandise. If an amount box does not require an entry, leave it blank.

April $8$

Purchase Returns and Allowances $$

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In a periodic inventory system, journal entries are made to temporary accounts $($purchases$,$ purchase discounts, purchase returns and allowances, and transportation$-$in$)$ instead of directly to the inventory account.

$3.$ Prepare the journal entry to record the April $10$ payment to Reece. If an amount box does not require an entry, leave it blank.

April $10$

Accounts Payable $$

Cash

Purchase Returns and Allowances $-x$