The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

Dec. 3 Martinez Ltd. sold goods to Marigold Corp. for $66,100, terms n/15, FOB shipping point. The inventory had cost Martinez $35,100. Martinez's management expected a return rate of 3% based on prior experience.

7 Shipping costs of $900 were paid by the appropriate company.

8 Marigold returned unwanted merchandise to Martinez. The returned merchandise has a sales price of $2,040, and a cost of $1,100. It was restored to inventory.

11 Martinez received the balance due from Marigold.

Record the journal entries