Use the following information for Cornerstone Exercises 6-20 and 6-21:

Mathis Company and Reece Company use the perpetual inventory system. The following

transactions occurred during the month of April:

a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of

2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the mer-

chandise sold was $2,225.

b. On April 1, Mathis paid freight charges of $250 cash to have the goods delivered to its

warehouse.

c. On April 8, Mathis returned $800 of the merchandise. The cost of the merchandise

returned was $500.

d. On April 10, Mathis paid Reece the balance due.

Cornerstone Exercise 6-20

Recording Purchase Transactions

Refer to the information for Mathis and Reece Companies above.

Required:

1. Prepare the journal entry to record the April 1 purchase of merchandise and payment of

freight by Mathis.

2. Prepare the journal entry to record the April 8 return of merchandise.

3. Prepare the journal entry to record the April 10 payment to Reece.