Prepare the journal entries to record these transactions on Susan Company's books using a periodic

inventory system.

Instructions

a.

On March 2, Susan Company purchased $900,000 of merchandise from Xi Li Company, terms

2/10, n/30.

b.

C

On March 6, Susan Company returned $110,000 of the merchandise purchased on March 2.

On March 12, Susan Company paid the balance due to Xi Li Company.

4. Johnson Company reports the following for the month of January.