Swahili Imports uses a periodic inventory system. Prepare journal entries for the following summarized transactions for 20X1 (omit explanations). For simplicity, assume the beginning and ending balances in accounts payable were zero.
1. Purchases (all using trade credit), $900,000
2. Purchase returns and allowances, $40,000
3. Freight in, $74,000 paid in cash
4. Payment for all credit purchases, less returns and allowances and cash discounts on purchases of $18,000