Question 7

Prepare general journal entries to record the following transactions for ABC company. Assume a perpetual inventory system.

March	4	Purchased merchandise for $6,500 from Sooner Company with terms 1/15, n/45.
	6	Returned goods costing $2,000 to Sooner Company for full credit.
	8	Sold merchandise to Broncho Company on credit for $5,000, terms 2/15, n/30. The items sold had a cost of $2,300.
	9	Purchased goods from Cowboy Corporation for $3,000 with terms 3/10, n/30.
	10	Paid $90 shipping charges related to the March 4 purchase from Sooner.
	11	Broncho Company returned merchandise that had a selling price of $800 and had cost ABC Company $300. The merchandise was restored to inventory.
	12	ABC Company received the balance due from Broncho Company for the March 8 sale.
	15	Paid the balance owed to Sooner Company.
	30	Paid Cowboy Corporation the balance due.