RECORDING PURCHASE TRANSACTIONS Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:

a. On April 1, Mathis Company purchased merchandise on account from Reece Company with credit terms of 2/10, n/30. The selling price of the merchandise was

$3,500 and the cost of the merchandise sold was $2,450.

b. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its warehouse.

c. On April 8, Mathis returned $1,000 of the merchandise. The cost of the merchandise returned was $700.

d. On April 10, Mathis paid Reece the balance due.

Required:

. Prepare the journal entry to record the April 1 purchase (ignore any freight charges)

of merchandise by Mathis Company.

. Prepare the journal entry to record the payment of freight on April 1.

. Prepare the journal entry to record the April 8 return of merchandise.

. Prepare the journal entry to record the April 10 payment to Reece Company.

Cornerstone Exercise