Ivanhoe Wholesalers uses a perpetual inventory system.

Mar. 1

Stellar Stores purchases $9,400 of merchandise for resale from Ivanhoe Wholesalers terms 2/10, n/30, FOB shipping point.

2

The correct company pays $135 for the shipping charges.

3

Stellar returns $1,200 of the merchandise purchased on March 1 because it was the wrong colour. Ivanhoe gives Stellar a $1,200 credit on its account.

21

Stellar Stores purchases an additional $13,000 of merchandise for resale from Ivanhoe Wholesalers terms 2/10, n/30, FOB destination.

22

The correct company pays $195 for freight charges.

23Stellar returns $600 of the merchandise purchased on March 21 because it was damaged. Ivanhoe gives Stellar a $600 credit on its account.

30

Stellar paid Ivanhoe the amount owing for the merchandise purchased on March 1.

31

Stellar paid Ivanhoe the amount owing for the merchandise purchased on March 21.

Additional information:

Mar. 1

Ivanhoe’s cost of the merchandise sold to Stellar was $3,800.

3

Ivanhoe’s cost of the merchandise returned by Stellar was $480. As the merchandise was not damaged, it was returned to Ivanhoe’s inventory.

21

Ivanhoe’s cost of the additional merchandise sold to Stellar Stores was $5,700.

23

Ivanhoe’s cost of the merchandise returned by Stellar was $180. As the merchandise was damaged, it was put in the recycling bin.

Prepare Ivanhoe Wholesalers’ journal entries to record the sale transactions with Stellar. Remember to record the freight and cash receipt transactions as appropriate. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)