Exercise #2 Trask Corporation had the following transactions related to the purchase of merchandise in May: May 5 Purchased merchandise costing $9.000 on account from Dill Co., terms 2/10, 1/30, FOB Shipping Point. Trask paid $300 cash to UBS Freight Co. 6 In order to match a competitor's lower price, Dill Co. agreed to reduce the purchase cost of the merchandise purchased on May 5 by $500. 15 Trask paid Dill Co, the amount due. Instructions (a) Prepare the journal entries to record the purchase transactions on the books of Trask Company in the journal below. (b) What is the cost of goods purchased? Purchases less: Purchase Returns and Allowances less: Purchase Discounts 5 equals: Net Purchases 7 plus: Freight-In 8 Cost of Goods Purchased 9 Date Account Titles PR Debit Credit . 5 7 3 0 1 2. 3 54 5 36 37 38 39 40