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

Dec. 3		Sheridan Company sold merchandise to Thomas Co. for $33,000, terms 2/10, n/30, FOB destination. This merchandise cost Sheridan Company $18,000.
4		The correct company paid freight charges of $875.
8		Thomas Co. returned unwanted merchandise to Sheridan. The returned merchandise had a sales price of $2,300 and a cost of $990. It was restored to inventory.
13		Sheridan Company received the balance due from Thomas Co.

Date Account Titles and Explanation Debit Credit (To record sales on account.) (To record cost of goods sold.) (Cash payment for freight costs.) (To record credit for goods returned.) (To record cost of goods returned.) Dec. 13 Date Account Titles and Explanation Debit Credit (Purchase on account.) (To record purchase return.)