Johns Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:

1. John's purchased merchandise on account for $6,200. Freight charges of $900 were paid in cash.
2. Johns returned some of the merchandise purchased in (1). The cost of the merchandise was $1,200 and Johns account was credited by the supplier.
3. Merchandise costing $3,400 was sold for $6,400 in cash.

Required: Prepare the necessary journal entries to record these transactions.

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[The following information applies to the questions displayed below.] Ferris Company began January with 9,000 units of its principal product. The cost of each unit is $4. Merchandise transactions for the month of January are as follows:

	Purchases
Date of Purchase	Units		Unit Cost*			Total Cost
Jan. 10	6,000		$	5			$	30,000
Jan. 18	9,000			6				54,000
Totals	15,000							84,000

* Includes purchase price and cost of freight.

Sales
Date of Sale	Units
Jan. 5	5,000
Jan. 12	3,000
Jan. 20	6,000
Total	14,000

10,000 units were on hand at the end of the month.

5. Calculate January's ending inventory and cost of goods sold for the month using Average cost, perpetual system.