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.