Problem 2: Perpetual Method Entries

Prepare journal entries to record the following transactions of George Company.

11/1 Purchased 200 units of product on account for $16,000, terms 2/10, n/30.

11/2 Paid freight of $960 on the 11/1 purchase.

11/4 Paid for the units purchased on 11/1, receiving a 2% discount.

11/16 Sold 150 of the units purchased on 11/1 on account at a selling price of $140 each.

11/18 The customer from the 11/16 transaction returned 10 units.