Answer Happy

Great Company is a merchandiser of mobile phones. Perpetual inventory system and gross transaction method are used in the company. The following are the transactions of March. 1 Purchased merchandise from Foxconn Ltd for $32,000 with terms 1/15, n 60, FOB shipping point, invoice date March 1. 2 Purchased merchandise from Huawei Company for $50,000 with terms 2/10, n/60, FOB destination point, invoice date March 2. 3 4 Paid $1,000 cash for shipping charges on the purchase of March 1 Paid $600 cash for shipping charges on the purchase of March 2 at the request of Huawei Company. 5 Great’s staff checked the goods purchased on March 1 and found some defective items. After negotiations with Foxconn, Great Company received a price reduction of $2,000 off the $32,000 of goods purchased. 8 Sold merchandise to A&A Company for $18,000 under credit terms of 2/7, n/30, FOB destination; invoice dated March 8. The merchandise had cost $ 12.000. 10 Paid $200 cash for shipping charges related to the sale to A&A Company on March 5. 12 A&A returned merchandise from March 8 sale that had cost Great Company $600 and was sold for $900. The merchandise was restored to inventory. 14 Received balance due from A&A for the March 8 sale less return on March 12. 16 Paid the amount due to Foxconn Ltd for the March 1 purchase less price reduction granted on March 5. 17 Paid the amount due to Huawei Company for the March 2 purchase less any expense claimed on Huawei. Required: Prepare journal entries to record the above transactions for Great Company.