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Mar 1 2 wanhoe Stores is a new company that started operations on March 1, 2021. The company has decided to use a perpetuat inventory

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Mar 1 2 wanhoe Stores is a new company that started operations on March 1, 2021. The company has decided to use a perpetuat inventory system. The following purchase transactions occurred in March: Ivanhoe Stores purchases 58.600 of merchandise for resale from Octagon Wholesale terms 2/10, 1/30, FOB shilpailing point The correct company pays $155 for the shipping charges 3 Ivanhoe returns $1,200 of the merchandise purchased on March 1 becikse it was the wrong colour, Octagon sives Ivanhoe a $1.200 credit on its account 21 Ivanhoe Store purchases an additional $12.000 of merchandises for rent from Octaron Wholesale terms 2/10 w30. FOB destination The correct company pays $175 for freight charpes Ivanhoe return $350 of the mechandise purchased on March 21 baca was damaged Octagon vesivanhoe $350 credit on its account Ivanhoe paid Octagon the amount owing for the merchandise purchased on March 1 Ivanhoe paid Octagon the amount owing for the merchandise purchased on March 21 22 31 Prepare Ivanhoe 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 Merchandise Inventory Debit Credit Mar. 1 8600 Man 2 155 Accounts Payable (Purchase on account.) Merchandise inventory Cash (To record cash payment of freight.) Accounts Payable Mars 1200 Merchandise Inventory (To record purchase return Merchandise Inventory 21 12000 Post the transactions to the Merchandise Inventory account. Compare the total in this account with the total of the cash paid during March by Ivanhoe for the purchase of inventory. (Note: Assume there were no sales of inventory in March.) (Post entries in the order of journal entries presented in the previous part) Merchandise Inventory Mar 1 8600 Mar 3 1200 Mar 21 12000 Mar. 23 350 Mar 23 155 Bal 19205 Bal 20755 70755 Total cash payments for inventory in March 5 15972

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