Using the information in E6-7, prepare journal entries to record the transactions, assuming Axe records discounts using the net method in a perpetual inventory system. Forfeited discounts are charged to Other Operating Expenses.

Data from E6-7:

During the months of January and February, Axe Corporation purchased goods from three suppliers. The sequence of events was as follows:

Jan. 6   Purchased goods for $1,200 from Green with terms 2/10, n/30.

6           Purchased goods from Munoz for $900 with terms 2/10, n/30.

14        Paid Green in full.

Feb. 2  Paid Munoz in full.

28        Purchased goods for $350 from Reynolds with terms n/45.