Question $2$: Recording journal transactions for merchandise $(20$ marks$)$

Martin's Magic has a lot of inventory. Mrs$.$ Martin wants to ensure that all her inventory and

related sales are recorded correctly. Below are selected transactions for Martin's Magic Inc

during December, $2023.$ Martin's Magic Inc uses a perpetual inventory system.

Dec $1$ Purchased merchandise on account from Sorcery Supplies at a cost of

$$45,000,$ FOB destination, terms $\frac{1}{15},\frac{n}{30}.$

$2$ The correct company paid $$2,000$ of freight charges to BroomstickCompany

on the December $1$ merchandise purchase.

$5$ Returned for credit $$3,000$ of damaged goods purchased from Sorcery

Supplies on December $1.$

$15$ Sold the remaining merchandise purchased from Sorcery Supplies to

Enchantment Enterprises for $$70,000,$ terms $\frac{2}{10},\frac{n}{30},$ FOB

destination.

$16$ The correct company paid $$1,800$ of freight charges on the December $15$

sale of merchandise.

$17$ Issued Enchantment Enterprises a credit of $$5,000$ for returned goods.

These

goods had cost Martin's Magic $$3,000$ and were returned to

inventory.

$24$ Received the balance owing from Enchantment Enterprises for the December

$15$ sale.

$30$ Paid Sorcery Supplies the balance owing for the December $1$

purchase.