Magnum Company uses perpetual inventory system.

Record the following transactions in May on Magnum Company's books: 1st: Bought merchandise on account from the supplier for $970, terms 2/10,n/30, FOB shipping point.

Debit . $970

Credit $970

To record merchandise purchased on account

3rd: The ..paid freight charges of $35 and the correct company records:

Debit .. $35

Credit $35

To record freight costs 5th: Returned $120 of the merchandise to the supplier.

Debit $120

Credit . $120

To record return of the purchase 7th: Paid the total amount owing to the supplier.

Debit .. $

. Merchandise Inventory $.

. Credit Answer $

To record cash payment within the discount period