1. Merchandise with a sales 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 prepays the freight cost of $85. Prior to payment for the goods, the buyer returns goods amounting to $750 to the shipper for merchandise with a cost of $425. The correct amount is received within the discount period.

Journalize the following transactions of the seller in the sequence indicated below (Hint: There should be a total of Six journal entries):

1. Sold the merchandise, recognizing the sale and cost of merchandise sold
2. Paid the freight charges
   1. Customer returned goods
   2. Received payment from the customer