2. in May 7, Ali Co. paid cash $150 as freight expenses FOB shipping point 3. May 12 Ali Co. returns goods purchased in May 7 to Ahmed Co. for $300 4. in May 15, Ali Co. paid the balance due within the discount period Instructions: Prepare Journal entries assuming periodic inventory system. Purchase transactions: 1- Purchases Date May 7 In May 7 Ali Co. purchase goods FOB shipping point from Ahmed Co. for $5000 on account under credit terms 2/10, n/30, Date May 7 General Journal Account Title & Explanation 2- Freight expenses Example: in May 7, Ali Co. paid cash $150 as freight expenses FOB shipping point General Journal Account Title & Explanation Date May 12 3- Purchase Return and allowances Ref. Debit General Journal Account Title & Explanation Ref. Debit Ref. Credit Debit Credit Credit