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Question - If Alpha 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.
Alpha Company purchased on account $2,500 of merchandise from Bravo Company on May 2, 2016.
Alpha Company returned, to Bravo Company, $250 of this merchandise on May 3, 2016.
Freight charges related to this transaction of $150 were paid by Bravo Company.
Use this information to prepare Alpha Company's General Journal entry (without explanation) for the payment for merchandise on May 12.
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