Prepare journal entries to record the following sales transactions in Sunland Company's books. Sunland uses a perpetual inventory system. Jan. 2 Sunland sold $10,000 of merchandise to Xiaoyan Company, terms n/30, FOB shipping point. The cost of the merchandise sold was $3,950. 4 The correct company paid freight costs of $245. 6 Xiaoyan returned $1,100 of the merchandise purchased on January 2 because it was not needed. The cost of the merchandise returned was $430, and it was restored to inventory. Feb. 1 Sunland received the balance due from Xiaoyan. (To record sales on account.) (To record cost of goods sold.) (To record credit for goods returned.) (To record cost of returned goods.)