On April 5, purchased merchandise from Cozart Company for $27,000

Worksheet for E5-13E5-13 on page 254This information relates to Woodward Co.1. On April 5, purchased merchandise from Cozart Company for $27,000, terms 2/10, n/30.2. On April 6, paid freight costs of $1,200 on merchandise purchased from Cozart Company.3. On April 7, purchased equipment on account for $30,000.4. On April 8, returned some of the April 5 merchandise to Cozart Company, which cost $3,600.5. On April 15, paid the amount due to Cozart Company in full.Instructions(a) Prepare the journal entries to record these transactions on the books of Woodward Co.using a periodic inventory system.(b) Assume that Woodward Co. paid the balance due to Cozart Company on May 4 insteadof April 15. Prepare the journal entry to record this payment.a) Prepare the journal entries to record these transactions on the books of Woodward Co.using a periodic inventory system.1. On April 5, purchased merchandise from Cozart Company for $27,000, terms 2/10, n/30.(Refer to page 254 “Recording Purchases of Merchandise” Journal entry illustrations)DateAccountsDebit Amt.Credit Amt.Apr 52. On April 6, paid freight costs of $1,200 on merchandise purchased from Cozart Company.(Refer to “Freight Costs” and related entries on page 254)DateAccountsDebit Amt.Credit Amt.Apr 63. On April 7, purchased equipment on account for $30,000. (This entry is not to Merchandise– refer to entries from Chapter 3)DateAccountsDebit Amt.Credit Amt.Apr 74. On April 8, returned some of the April 5 merchandise to Cozart Company, which cost $3,600.(Refer to page 254 “Purchase Returns and Allowances” and related entries)DateAccountsDebit Amt.Credit Amt.Apr 85. On April 15, paid the amount due to Cozart Company in full (Here you need to calculatethe end balance in the accounts payable after you have taken into consideration all thepurchases on account, returns and discounts for paying within the 2/10 terms – Seejournal entry on page – 252 under “Purchase Discounts”)DateAccountsDebit Amt.Credit Amt.Apr 15b)Assume that Woodward Co. paid the balance due to Cozart Company on May 4 instead ofApril 15. Prepare the journal entry to record this payment. (Here Woodward Co. did notmeet the terms for the discount. So they must pay the remaining amount of theinvoice (Total invoice less returns) in full. )DateMay 4AccountsDebit Amt.Credit Amt.