$($Appendix $6$A$)$ Recording Purchases

Compass Inc., purchased $1,000$ bags of insulation, on account, from Glassco Inc. The bags of insulation cost $$3\mathrm{.}00$ each. Compass paid Turner Trucking $$260$ to have the bags of insulation shipped to its warehouse. Compass returned $50$ bags that were defective and paid for the remainder. Assume that Compass uses the periodic inventory system.

Required:

Prepare a journal entry to record the purchase of the bags of insulation. If an amount box does not require an entry, leave it blank.

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Prepare the entry to record the payment for shipping. If an amount box does not require an entry, leave it blank.

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Prepare the entry for the return of the defective bags. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places.

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Prepare the entry to record the payment for the bags kept by Compass. If an amount box does not require an entry, leave it blank. Round your answers to two decimal places.

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What is the total cost of this purchase? Round your answer to two decimal places.

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