Goodall Inc. uses a perpetual inventory system. During the months of October and November, Goodall

sold goods to three customers. The sequence of events was as follows:

Oct.

20

Sold 10 items of merchandise to Barrington Inc., at a selling price of $3,000 (total); terms 5/10,

n/30. The goods cost Goodalls $1,500.

23

Sold 20 identical items of merchandise to Baileys Inc., at a selling price of $12,000 (total); terms

3/10, n/30. The goods cost Goodalls $6,000.

24

Baileys Inc., returned 2 of the items purchased on the 23

rd

. Both items were in perfect condition

and full credit was given to Baileys Inc.

Nov.

2

Baileys Inc., paid its account balance in full.

22

Barrington Inc., paid in full for the invoice of October 20.

Show the journal entries using the net method