Recording Purchases and Shipping Terms On May 12, Digital Distributors received three shipments of merchandise. The first was shipped FOB shipping point, had a total invoice price of $142,500, and was delivered by a trucking company that charged an additional $8,300 for transportation charges. The second was shipped FOB shipping point and had a total invoice price of $87,250, including transportation charges of $5,700 that were prepaid by the seller. The third shipment was shipped FOB destination and had an invoice price of $21,650, excluding transportation charges of $1,125 paid by the seller. Digital uses a perpetual inventory system. Digital has not paid any of the invoices. Required: Prepare journal entries to record these purchases. Journalize the entries to record the first shipment and transportation charges, if required.

Recording Purchases and Shipping Terms On May 12, Digital Distributors received three shipments of merchandise. The first was shipped FOB shipping point, had a total invoice price of $142,500, and was delivered by a trucking company that charged an additional $8,300 for transportation charges. The second was shipped FOB shipping point and had a total invoice price of $87,250, including transportation charges of $5,700 that were prepaid by the seller. The third shipment was shipped FOB destination and had an invoice price of $21,650, excluding transportation charges of $1,125 paid by the seller. Digital uses a perpetual inventory system. Digital has not paid any of the invoices. Required: Prepare journal entries to record these purchases. Journalize the entries to record the first shipment and transportation charges, if required. May 12 Inventory 142,500 Accounts Payable 142,500 (Purchased inventory on account) May 12 Inventory 8,300 Accounts Payable 8,300 (Incurred shipping costs) Journalize the entries to record the second shipment and transportation charges, if required. If no entry is required, type "No entry required" and leave the amount boxes blank. May 12 Inventory 21,650 Accounts Payable 21,650 (Purchased inventory on account) May 12 (Paid shipping costs, if required) Journalize the entries to record the third shipment and transportation charges, if required. If no entry is required, type "No entry required" and leave the amount boxes blank. May 12 Inventory Accounts Payable (Purchased inventory on account) May 12 (Paid shipping costs, if required)