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9. Highland, Inc. entered into the transactions listed below. In the journal provided, prepare Highland's entries, assuming use of the perpetual inventory system. Omit explanations.

Mar.	2	Purchased $450 of merchandise on credit, terms n/30.
	6	Returned $75 of the items purchased on March 2.
	8	Paid freight charges of $25 on the items purchased March 2.
	16	Sold merchandise on credit for $600, terms n/15. The merchandise had a cost in inventory of $375.
	17	Of the merchandise sold on March 16, $50 of it was returned. The items had cost to Highland of $15.
	25	Received payment in full from the customer of March 16.
	31	Paid for the merchandise purchased on March 2.

ANS:

General Journal						Page 1
Date		Description		Post. Ref.	Debit	Credit
Mar.	2	Merchandise Inventory
			Accounts Payable
	6	Accounts Payable
			Merchandise Inventory
	8	Freight-In
			Cash
	16	Accounts Receivable
			Sales
	16	Cost of Goods Sold
			Merchandise Inventory
	17	Sales Returns and Allowances
			Accounts Receivable
	17	Merchandise Inventory
			Cost of Goods Sold
	25	Cash
			Accounts Receivable
	31	Accounts Payable
			Cash

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