Cornerstone Exercise 6-29 (Algorithmic) Recording Purchase Transactions (Appendix 6A) For Mathis Company and Reece Company, 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 $3,000 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. Assume that Mathis uses a periodic inventory system. Required: 1. Prepare the journal entry to record the April 1 purchase of merchandise and payment of freight by Mathis Company April 1 (Purchased Inventory on account) April 1 (Paid cash for shipping fees) 2. Prepare the journal entry to record the April 8 return of merchandise. April (Returned merchandise)