Use the data from SE5-2 and prepare the journal entries to record the June transactions.

Exercise SE5-2

Donna Company began operations on June 1. The following transactions took place in June:

a. Purchases of merchandise on account were \(\$ 750,000\).

b. The cost of freight to receive the inventory was \(\$ 20,000\). This was paid in cash.

c. Donna returned \(\$ 10,000\) of the merchandise due to an ordering error. Donna received a full credit for the return.

d. Donna paid the remaining balance for the merchandise.

Calculate the dollar amount that Donna will have in inventory at the end of the month. Assume Donna uses the perpetual inventory system and there were no sales.