Exercise $4-4($Algo$)$ Purchasing transactions LO P$1$

Prepare journal entries to record the following transactions of Recycled Fashion retail store. Recycled Fashion uses a perpetual

inventory system and the gross method.

March $3$ Purchased $$1,280$ of merchandise from GreenWorld Company with credit terms of $\frac{2}{15},\frac{n}{60},$ invoice dated March

$3,$ and FOB shipping point.

March $4$ Paid $$90$ cash for shipping charges on the March $3$ purchase.

March $5$ Returned to GreenWorld unacceptable merchandise that had an invoice price of $$130.$

March $18$ Paid GreenWorld for the March $3$ purchase, net of the discount and the returned merchandise.

March $19$ Purchased $$620$ of merchandise from PeopleFirst Corporation with credit terms of $\frac{1}{10},$ n$/30,$ invoice dated

March $19,$ and FOB destination.

March $21$ After negotiations, received from PeopleFirst a $$20$ allowance $($for scuffed merchandise$)$ toward the $$620$ owed

on the March $19$ purchase.

March $29$ Sent check to PeopleFirst paying for the March $19$ purchase, net of the allowance and the discount.

Journal entry worksheet

Purchased $$1,280$ of merchandise from GreenWorld Company with credit

terms of $\frac{2}{15},\frac{n}{60},$ invoice dated March $3,$ and FOB shipping point.

Note: Enter debits before credits.