Prepare the journal entries to record these transactions on Allied Company's books. Allied Company uses a periodic inventory system.
Feb. 5 Allied purchased $12,000 of merchandise from NW Wholesale Company, terms 2/10, n/30, FOB shipping point.
6 The correct company paid freight costs of $110.
8 Allied returned $1,000 of the merchandise purchased on February 5.
11 Allied paid the balance due to NW Wholesale.