Shannon Parts uses the periodic method of inventory accounting.

1. Journalize the following transactions relating to the company’s purchases in 2012:

Jan. 24 Purchased $18,000 of inventory on credit, terms 2/10, n/30.

30 Paid $17,640 to pay off the debt from the January 24 purchase.

Mar. 14 Purchased $140,000 of inventory on credit, terms 2/10, n/30. Paid $1,150 in cash for transportation.

Apr. 1 Returned defective machinery worth $25,000 from the March 14 purchase to manufacturer.

13 Paid $115,000 to pay off the debt from the March 14 purchase.

2. Assuming these were the only purchases in 2012, compute the cost of goods sold. Beginning inventory was $23,400 and ending inventory was $26,250.