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Exercise 5-3 Sheridan Stores is a new company that started operations on March 1, 2017. The company has decided to use a perpetual inventory system.

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Exercise 5-3 Sheridan Stores is a new company that started operations on March 1, 2017. The company has decided to use a perpetual inventory system. The following purchase transactions occurred in March Mar. Sheridan Stores purchases $9,000 of merchandise for resale from Octagon Wholesalers, terms 2/10, 1/30, TOB shipping point 2 The correct company pays $140 for the shipping charges 3 Sheridan returns $1,100 of the merchandise purchased on March 1 because it was the wrong colour. Octagon gives Shenden a $1,100 credit on its account 21 Sheridan Stores purchases an additional $12,000 of merchandise for resale from Octagon Wholesalers terms 2/10, 1/30, FOB destination 22 The correct company pays $170 for freight charges 23 Sheridan returns $400 of the merchandise purchased on March 21 because it was damaged. Octagon gives Shendan a $400 credit on its account. 30 Sheridan pays Octagon the amount owing for the merchandise purchased on March 1. 31 Sheridan pays Octagon the amount owing for the merchandise purchased on March 21 Prepare Sheridan Stores journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Mar 1 Mar. 2 V Mar. 3 V Mar. 21 Mar. 22 Mar. 23 Mar. 30 Mar 31 Post the transactions to the merchandise inventory account. Compare the total in this account with the total of the cash pd during March by Sheridan for the purchase of investory tessure 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 D

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