Problem - The following transactions were made by the Astor retail store during March:
March 2 Purchased merchandise from Sterling Company under the following terms:
- $1,800 invoice price
- 2/15
- n/60
- FOB factory. (Astor uses a periodic inventory control system).
3 Paid $125 for shipping charges on the purchase of March 2.
4 Returned to Sterling Company unacceptable merchandise that had an invoice price of $300.
17 Sent a cheque to Sterling Company for the March 2 purchase, net of the discount and the returned merchandise.
18 Purchased merchandise from Helix Company under the following terms:
- $2,500 invoice price
- 2/10
- n/30
- FOB destination.
21 After brief negotiations, received a credit memorandum from Helix company granting a $700 allowance on the purchase of March 18.
28 Sent a cheque to Helix Company paying for the March 18 purchase, net of the discount and the allowance.
Required: Prepare journal entries to record the above transactions.