The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec 3 4 Blossom Company sold merchandise to Thomas Co. for $32,000, terms 2/10,n/30, FOB destination. This merchandise cost Blossom Company $18.000. The correct company paid freight charges of $700. Thomas Co. returned unwanted merchandise to Blossom. The returned merchandise had a sales price of $2,300 and a cost of $990. It was restored to inventory. Blossom Company received the balance due from Thomas Co. 8 13 Prepare the journal entries to record these transactions on the books of Blossom Company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit Dec 3 Account Receivable 32000 Sales Revenue 32 (To record sales on account.) Dec 3 Cost of Goods Sold 18000 Merchandise Inventory 18 (To record cost of goods sold.) Dec. 4 V Freight charges 700 Cash (Cash payment for freight costs.) Dec. 8 Sales Returns 2300 Accounts Receivable 2 (To record credit for goods returned.) (To record credit for goods returned.) Dec. 8 Merchandise Inventory 990 Cost of Goods Sold (To record cost of goods returned.) Dec. 13 Cash 29700 Accounts Receivable 29 (Collection on account.) Prepare the journal entries to record these transactions on the books of Thomas Co. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (Purchase on account.) (To record purchase return.) (Payment on account.) Assuming that Thomas Co. had a balance in Merchandise Inventory on December 1 of $6,000, determine the balance in the Merchandise Inventory account at the end of December for Thomas Co. (Post entries in the order of journal entries presented in the previous part.) Merchandise Inventory