On June 10, Sunland Company purchased $10,000 of merchandise on account from Marigold Company, FOB shipping point, terms 1/10, n/30. Sunland pays the freight costs of $420 on June 11. Damaged goods totaling $300 are returned to Marigold for credit on June 12. The fair value of these goods is $75. On June 19, Sunland pays Marigold Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction for Marigold Company. The merchandise purchased by Sunland on June 10 had cost Marigold $4,500.

Date	Account Title & Explanation	Debit	Credit
	(To Record Credit Sale)
	(To Record Cost of Merchandise Sold)
	(To Record Merchandise Returned)