Oceana Inc. sells widgets and utilizes periodic inventory and the gross method of accounting for purchases. Oceana Inc. began Q4 2021 (Sept 1^st 2021 to Dec 31^st 2021) with $1,200 worth of inventory and prepares quarterly financial statements.

Purchase 1

On Nov 1^st 2021, Oceana Inc. sent a purchase order for 250 widgets to Plankton Corp at $4 each, along with a check to cover the payment of this purchase. The terms of the purchase dictate that the buyer pays for freight. On Nov 1^st 2021, Plankton Corp ships out all 250 widgets to Oceana Inc, FOB shipping point. The freight carrier, Baderal Express, picks up the widgets on Nov 1^st 2021 and on the same day, Oceana Inc. makes a cash payment of $70 for the freight charges. The widgets arrive at Oceana Inc. on Nov 5^th 2021.

Purchase 2

On Dec 2th 2021, Oceana Inc. sent a purchase order for 100 widgets to Mann Co. at $5 each, on account. Mann Co. offers credit terms of 10/20, n/60 from date of invoice. The terms of the purchase dictate that the seller pays for freight costs of $200. On the same day, Mann Co ships the order to Oceana Inc., FOB destination. The freight carrier, Baderal Express, picks up the widgets on Dec 2^nd and the widgets arrive at Oceana Inc. on Dec 3^rd 2021. Baderal Express sends out the invoice for the freight charges out on December 3^rd as well. On Dec 10^th, Oceana Inc. make a cash payment to Mann Co. to pay off the amounts owed for the purchase.

Assuming that the total cost of goods sold for Q4 2021 was $1200, provide:

• Transactional journal entry for purchase 1 (4 points)
• Journal entry for purchase 2 (3 points)
• Journal entry for cash payment for purchase 2 (2 points)
• Journal entry / entries for COGS (6 points)

Be sure to include the date for all of your journal entries.