pls answer E5-4

ase that shows the cost and of d goods purchased for resale recorded with every sa (D, Profit divided by net sales A price reduction given by a seller for earily payment on a credit sale is a new company that started operations on March 1, 2017. The com tem. The following purchase transactions occurred in March: Stellar Stores ES-3 apepetul n pany has decided to use Octagon Wholesalers, terms 2/10, n/30 $1.000 of the merchandise purchased on March 1 because it was the wrong colour Octagon Stellar Stores purchases $9,000 of merchandise for resale from FOB shipping point. The correct comp L Record purc LO 2) AP 2 any pays $155 for the shipping charges. gives Stellar a $1,000 credit on its account. Stellar Stores purchases an additional $13,000 of terms 2/10, n/30, FOB destination. The correct company pays $170 for freight charges. Stellar returns $400 of the merchandise purchased on March 21 because it was damaged. Octagon ghives Stellar a $400 credit on its account. 21 merchandise for resale from Octagon Wholesalers 22 23 Stellar pays Octagon the amount owing for the merchandise purchased on March l ons al Prepare Stellar Stores' journal entries to record the above transactions l Post the transactions to the Merchandise Inventory account. Compare the total in this account with of the cash paid during March by Stellar for the purchase of inventory. (Note: assume there were no sales inventory in March.) E-4 Octagon Wholesalers uses a perpetual inventory system. Refer to the data in E5-3 regarding sales transac- Record tions with Stellar Stores and to the additional information below for Octagon. LO 3) Mar. 1 Octagon's cost of the merchandise sold to Stellar was $3,960. 3 Octagon's cost of the merchandise returned by Stellar was $440. As the merchandise was not damaged it was returned to Octagon's inventory 21 Octagon's cost of the additional merchandise sold to Stellar Stores was $5,720. 23 Octagon's cost of the merchandise returned by Stellar was $176. As the merchandise was damaged, it was put in the recycling bin ons agon Wholesalers' journal entries to record the sales transactions with Stellar. Remember to record the freight and cash receipt transactions as appropriate b) Calculate Octagon's net sales, cost of goods sold, and gross profit for these sales Res lin 1nril and May Roth sompanies use a perpetual inventory system