Prepare journal entries to record the following sales transactions in Sandhill Company's books. Sandhill uses a perpetual inventory system.

Mar. 12

Sandhill sold $20,000 of merchandise to Jarek Company, terms 2/10, n/30, FOB destination. The cost of the merchandise sold was $10,600.

13

The correct company paid freight costs of $225.

14

Jarek returned $2,300 of the merchandise purchased on March 12 because it was damaged. The cost of the merchandise returned was $1,060. Sandhill examined the merchandise, decided it was no longer saleable, and discarded it.

22

Sandhill received the balance due from Jarek.