Journal Entries for Office Max (Seller) Feb. 2, NMU purchased 100 cases of printing paper worth $3,800 from Office Max on account. Public Freight Company got a payment of $150 for freight charges. (FOB Shipping Point) The merchandise cost Office Max $2,400. Feb. 3, NMU ordered 50 cases of printing paper worth $1,900 from Office Max and paid by a check. Public Freight Company received a payment of $100 for delivery charges. (FOB Destination) The printing paper cost Office Max $1,200. Feb. 8, Feb. 8, NMU returned some printing paper costing $300 ordered on Feb. 2 to Office Max. The cost of returned printing paper was $140. Feb. 10, NMU paid the balance due of $3,500 (gross invoice price of $3,800 less purchase returns and allowances of $300), the last day of the discount period. Credit term on the invoice is 2/10, n/30. Feb. 28, Office Max has an unadjusted balance of $40,500 in merchandise inventory. Through a physical count, Office Max determines that its actual merchandise inventory at month-end is $40,000