Problem 5-3A

Presented below are selected transactions for Sarasota Company during September and October of the current year. Sarasota uses a perpetual inventory system.

Sept. 1		Purchased merchandise on account from Hillary Company at a cost of $48,000, FOB destination, terms 1/15, n/30.
2		The correct company paid $2,000 of freight charges to Trucking Company on the September 1 merchandise purchase.
5		Returned for credit $3,300 of damaged goods purchased from Hillary Company on September 1.
15		Sold the remaining merchandise purchased from Hillary Company to Irvine Company for $70,000, terms 2/10, n/30, FOB destination.
16		The correct company paid $2,200 of freight charges on the September 15 sale of merchandise.
17		Issued Irvine Company a credit of $6,000 for returned goods. These goods had cost Sarasota Company $3,300 and were returned to inventory.
25		Received the balance owing from Irvine Company for the September 15 sale.
30		Paid Hillary Company the balance owing for the September 1 purchase.
Oct. 1		Purchased merchandise on account from Kimmel Company at a cost of $55,000, terms 2/10, n/30, FOB shipping point.
2		The correct company paid freight costs of $1,100 on the October 1 purchase.
3		Obtained a purchase allowance of $2,600 from Kimmel Company to compensate for some minor damage to goods purchased on October 1.
10		Paid Kimmel Company the amount owing on the October 1 purchase.
11		Sold all of the merchandise purchased from Kimmel Company to Kieso Company for $80,000, terms 2/10, n/30, FOB shipping point.
12		The correct company paid $800 freight costs on the October 11 sale.
17		Issued Kieso Company a sales allowance of $1,500 because some of the goods did not meet Kieso's exact specifications.
31		Received a cheque from Kieso Company for the balance owing on the October 11 sale.