Prepare the journal entries to record these transactions on Kimbrel Company’s books using a periodic inventory system.

(a) On March 2, Kimbrel Company purchased $800,000 of merchandise from Pineda Company, terms 2/10, n/30.

(b) On March 6, Kimbrel Company returned $95,000 of the merchandise purchased on March 2.

(c) On March 12, Kimbrel Company paid the balance due to Pineda Company.

AppendixLO1