Jun 4 Willem Corporation purchased $4,000 worth of merchandise, terms 3/10, n/30, FOB shipping point, from Cate Corporation. The cost of the merchandise to Cate was $2,600.

6 The appropriate party paid shipping costs of $150.

10 Willem returned $700 worth of goods to Cate for full credit. The goods had a cost of $450 to Cate and were placed back into inventory.

12 Willem paid Cate the outstanding balance.

Required

1. Prepare the journal entries to record these transactions in Cates (seller) records. Cate uses the perpetual inventory system, and follows ASPE

Calculate the balance in Willems inventory account for the goods purchased from Cate.