Prepare journal entries to record these purchases.
Recording Purchases and Shipping Terms
On May 12, Digital Distributors received three shipments of merchandise. The first was shipped FOB shipping point, had a total invoice price of $142,500, and was delivered by a trucking company that charged an additional $8,300 for transportation charges. The second was shipped FOB shipping point and had a total invoice price of $87,250, including transportation charges of $5,700 that were prepaid by the seller. The third shipment was shipped FOB destination and had an invoice price of $21,650, excluding transportation charges of $1,125 paid by the seller. Digital uses a perpetual inventory system. Digital has not paid any of the invoices.
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