Exercise #1 Bell Company had the following transactions related to the purchase of merchandise during June: Jun 7 Purchased merchandise costing $25,000 on account from Gerber Company, terms 2/10,n/30, FOB Shipping Point. Bell Company paid $500 cash for freight charges to UBS Freigth Co. 9 Bell returned merchandise costing $2,000 to Gerber for credit. 17 Bell paid Gerber Company the amount due. Instructions a) Prepare the journal entries to record the purchase transactions on the books of Bell Company in the journal below. (b) If Bell paid the balance due to Gerber Company on June 30 instead of June 17, 3 how would the entries in part (a) change? 4 5 6 (c) What is the cost of goods purchased? 7 Purchases 8 less: Purchase Returns and Allowances 19 less: Purchase Discounts 20 equals: Net Purchases 21 plus: Freight-In 22 Cost of Goods Purchased Date Account Titles PR Debit Credit 5 6 7 8 9 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45