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Problem - Prepare the journal entries to record the following purchase transactions in Sunland Company's books, Sunland uses a perpetual inventory system.
Jan. 2 Sunland purchased $20,200 of merchandise from Feng Company, terms n/30, FOB shipping point.
Jan. 4 The correct company paid freight costs of $285.
Jan. 6 Sunland returned $2,100 of the merchandise purchased on January 2 because it was not needed.
Feb. 1 Sunland paid the balance owing to Feng.
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