8 3 3 c. 13 v Cost of Goods Sold Inventory (To record cost of merchandise sold) Sales Returns and Allowances Accounts Receivable) (To record freight charges) 373500 23200 373500 23200 The following transactions are for Sunland Company. 1. On December 3, Sunland Company sold $654,200 of merchandise to Marigold Co., on account, terms 2/10, n/30, FOB destination. Sunland paid $390 for freight charges. The cost of the merchandise sold was $373,500. On December 8, Marigold Co. was granted an allowance of $23,200 for merchandise purchased on December 3. 2. 3. On December 13, Sunland Company received the balance due from Marigold Co. (a) Your answer is partially correct. Prepare the journal entries to record these transactions on the books of Sunland Company using a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)