On March 1, 2017, Company Z had 1800 merchandise inventories at a cost of $59.90 each. The company uses periodic inventory system and has completed the following merchandising transactions during the month:

March. 3 Purchased 5000 merchandise at $61.90 each from Company X, terms 3/10. n/60, FOB shipping point, appropriate party also paid $2000 freight charges on that day.

9 Returned 200 merchandise due to damage during shipment to Company X, Company X approved credit for the damage.

12 Paid Company X in full.

17 Sold 5000 merchandise on account to Company Y for $99.90 each, terms 2/10, n/60, FOB destination, appropriate party also paid $1500 for freight charges.

21 Purchased 2000 merchandise at $63.90 each from Company L, terms 1/10, n/30, FOB destination, appropriate party also paid for $1000 freight charges on that day.

30 Received payment from Company Y in full.

Merchandise inventory on March 31^st is worth of $222,840.

Instructions:

1. Prepare the journal entries to record these transactions on the books of Company Z using periodic inventory system.

ii.Prepare the cost of goods sold section for the month ended 31^st March 2017 for Company Z.