This information relates to Wildhorse Co. ### Journal Entry ExerciseThis page provides a transaction scenario for Wildhorse Co., concerning purchases and payments related to Pina Company, and requires the preparation of journal entries using a periodic inventory system.#### Transaction Summary:1. **April 5**: Purchased merchandise on account from Pina Company for $27,200 with terms 4/10, net/30, FOB shipping point.2. **April 6**: Paid freight costs of $930 on merchandise purchased from Pina Company.3. **April 7**: Purchased equipment on account for $31,300.4. **April 8**: Returned some merchandise from the April 5 purchase, which cost $3,300, to Pina Company.5. **April 15**: Paid the amount due to Pina Company in full.#### Instructions:Prepare the journal entries to document these transactions in the books of Wildhorse Co. These entries should use a periodic inventory system. * **Note**: Credit account titles are indented automatically when an amount is entered. There is no need to indent manually. Journal entries should be recorded in the order the transactions are presented.#### Journal Entry Table:The table consists of columns to enter:- **Date**: When the transaction occurred.- **Account Titles and Explanation**: Descriptions and titles of the accounts affected.- **Debit / Credit**: Amounts to be debited or credited.This exercise aids in understanding how transactions are documented in accounting records and helps in learning the mechanics of a periodic inventory system.

Discount amount = net Purchase x discount rate = (27200-3300) x4% = $956a. Date Account Titles and Explanation Debit Credit April 5 Inventory $27,200 Accounts payable $27,200 April 6 Inventory $930 Cash $930 April 7 Equipment $31,300 Accounts payable $31,300 April 8 Accounts payable $3,300 Inventory $3,300 April 15 Accounts payable (27,200-3,300) $23,900 Inventory $956 Cash $22,944