Merchandise with a list price of $4,200 and costing $2,300 is sold on account, subject to the following terms: FOB destination, 2/10, n/30. The seller pays the freight costs of $85. Prior to payment for the goods, the seller issues a credit memo for $750 to the customer for merchandise that is defective and not returned. Payment is received within the discount 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 merchandise sold.

b.Paid the freight charges.

c.Issued the credit memo.

Received payment from the customer