Suppose King Cornelius Company engaged in the following transactions during June of the current year:

Date	Description
3-Jun	Sold goods to Lyle Company on account with credit terms 2/10, n/30, $1,250 (cost $585).
9-Jun	Purchased inventory on account with credit terms of 1/10, n30, $2,500.
12-Jun	Returned $1,000 of the defective inventory purchased on June 3.
15-Jun	Purchased goods for $6,200 on account. Credit terms were 3/15, n/30.
16-Jun	Paid a $180 freight bill on goods purchased.
18-Jun	Sold inventory for $3,200 on account with credit terms of 2/10, n/30 (cost, $1,600).
22-Jun	Received returned goods from the customer of the June 18 sale, $600 (Cost $275).
24-Jun	Paid supplier for goods purchased on June 15.
28-Jun	Received cash in full settlement of the account from the customer who purchased inventory on June 18.
3-Jul	Paid remaining accounts payable
10-Jul	Purchased $4,800 in inventory.
12-Jul	Agreed to take a $1,250, 4%, 90-day note from Lyle Company in exchange for account.

Requirements

1. Journalize the preceding transactions. Assume King Cornelius uses a perpetual inventory system.
2. Set up T-accounts and post the journal entires to show the ending balances in the Merchandise Inventory and the Cost of Goods Sold accounts only.