Prepare journal entries to record the following sales transactions in Sandhill Companys books Sandhill uses a perpetual inventory system Jan 2 Sandhill sold $14,000 of merchandise to Xiaoyan Company, terms n30, FOB shipping point The cost of the merchandise sold was $5,530 4 The correct company paid freight costs of $245 6 Xiaoyan returned $1,600 of the merchandise purchased on January 2 because it was not needed The cost of the merchandise returned was $630, and it was restored to inventory February.