Entries for Purchase Transactions Equatorial Imports uses a periodic inventory system. Prepare journal entries for the following sum- marized transactions for 20X1 (omit explanations). For simplicity, assume the beginning and ending balances in accounts payable were zero. 1. Purchases (all using trade credit), $880,000. 2. Purchase returns and allowances, $50,000. 3. Freight in, $74,000 paid in cash. 4. Payment for all credit purchases, less returns and allowances and cash discounts on purchases of $18,000.