Grain Company used the periodic inventory system for purchase & sales

Grain Company used the periodic inventory system for purchase & sales of merchandise. Discount terms for both purchase & sales are, FOB Destination, 2/10, n30 and the net method is used.

Grain Company purchased on account $2,800 of merchandise from Dakota Company on May 2, 2016.

Grain Company returned, to Dakota Company, $300 of this merchandise on May 3, 2016.

Freight charges related to this transaction of $150 were paid by Dakota Company.

Prepare Grain Company’s compound General Journal entry (without explanation) for the payment for merchandise on May 15.

Here’s the SOLUTION

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