Problem #1 On October 10, Jones Company purchased $7,000 of merchandise from Taylor Company, FOB shipping point terms 2/10,n/30. The goods cost Taylor Company $3,000. Jones pays the freight costs of $350 on October 12. Damaged goods totaling $500 are returned to Taylor for credit on October 15. The fair value of these goods is $50. On October 19. Jones pays Taylor Company in full, less the purchase discount Prepare journal entries for each transaction on the books of Jones Company, b. Prepare journal entries for each transaction on the books of Taylor Company