Carla VistaStores is a new company that started operations on March 1, 2021. The company has decided to use a perpetual inventory system. The following purchase transactions occurred in March:

Mar. 1

Carla VistaStores purchases $8,700of merchandise for resale from Octagon Wholesalers, terms 2/10, n/30, FOB shipping point.

2

The correct company pays $140for the shipping charges.

3

Carla Vistareturns $1,200of the merchandise purchased on March 1 because it was the wrong colour. Octagon givesCarla Vistaa $1,200credit on its account.

21

Carla VistaStores purchases an additional $14,000of merchandise for resale from Octagon Wholesalers, terms 2/10, n/30, FOB destination.

22

The correct company pays $195for freight charges.

23Carla Vistareturns $600of the merchandise purchased on March 21 because it was damaged. Octagon givesCarla Vistaa $600credit on its account.

30

Carla Vistapaid Octagon the amount owing for the merchandise purchased on March 1.31

Carla Vistapaid Octagon the amount owing for the merchandise purchased on March 21.

Making Carla VistaStores' journal entries to record the above transactions.

Date

Account Titles and Explanation

1.(Purchase on account.)

2.(To record cash payment of freight.)

(To record purchase return.)

(Purchase on account.)

(To record purchase return.)

(Payment on account.)

(Payment on account.)

Debit

Credit

Post the transactions to the Merchandise Inventory account. Compare the total in this account with the total of the cash paid during March byCarla Vistafor the purchase of inventory. (Note:Assume there were no sales of inventory in March.)(Post entries in the order of journal entries presented in the previous part.)

Merchandise Inventory

Total cash payments for inventory in March