Merchandise with a list price of $$4,200$ and costing $$2,300$ is sold on account, subject to the following terms: FOB destination, $\frac{n}{30}.$ The seller prepays the freight costs of $$85($debit Delivery Expense for the freight costs$).$ Prior to payment for the goods, the seller issues a credit memo for $$750$ to the customer for merchandise costing $$425$ that is returned. Payment is received within the credit period. The company uses a perpetual inventory system.

Journalize the foregoing transactions of the seller in the following sequence:

a$.$ Sold the merchandise, recognizing the sale and cost of goods sold.

b$.$ Paid the freight charges.

c$.$ Issued the credit memo.

d$.$ Received payment from the customer.

If an amount box does not require an entry, leave it blank.

a

Inventory

b Delivery Expense $$

Cash $$

$$

c $$

Sales Returns and Allowances $$

$$

Inventory $$

$$

$$

$$

$$

$r$

$$

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