Cornerstone Exercise 6-20 (Algorithmic) Recording Purchase Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was $2,900, 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 (ignore any freight charges) of merchandise by Mathis Company. April 1 (Purchased inventory on account) Prepare the journal entry to record the payment of freight on April 1. April 1 (Recorded the payment of freight charges) Prepare the journal entry to record the April 8 return of merchandise. April 8