Instructions Chart of Accounts General Journal Instructions Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of...

Extracted text: Instructions Chart of Accounts General Journal Instructions Merchandise with a list price of $4,700 is purchased on account, terms FOB shipping point, 1/10, n/30. The seller prepaid freight costs of $100. Prior to payment, $1,600 of the merchandise is returned. The invoice is paid within the discount period. Required: Record the foregoing transactions of the buyer in the sequence indicated below, assuming a perpetual inventory system is used. a. Purchased the merchandise on December 21.* b. Recorded receipt of the credit memo for merchandise returned on December 28.* c. Paid the amount owed on December 31.* "Refer to the Chart of Accounts for exact wording of account titles.