Shore Co. sold merchandise to Blue Star Co. on account, $112,000, terms FOB shipping point, n/30. The cost of the goods sold is $67,200. Shore paid freight of $1,800. Shore Co. issued a credit memo for $7,500 to Blue Star Co. for merchandise that was returned. The cost of the merchandise returned was $4,000.

Journalize Shore Co.'s entry for the sale, credit memo, and payment of amount due. 

Journalize Blue Star Co.'s entry for the purchase, credit memo, and payment of amount due.