The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 4 Oriole Company sold merchandise to Thomas Co. for $36,000, terms 2/10,n/30, FOB destination. This merchandise cost Oriole Company $18,000. The correct company paid freight charges of $825. Thomas Co.returned unwanted merchandise Oriole. The returned merchandise had a sales price of $2,400 and a cost of $990. It was restored to inventory. Oriole Company received the balance due from Thomas Co. 8 13 Prepare the journal entries to record these transactions on the books of Oriole 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 entero for the amounts. Record journal entries in the order presented in the problem.) Debit Credit Date Dec. 3 Account Titles and Explanation Accounts Receivable 36000 Sales 36000 (To record sales on account.) Cost of Goods Sold Dec. 3 18000 Merchandise Inventory 18000 (To record cost of goods sold.) Freight Out Dec. 4 825 Cash 825 (Cash payment for freight costs.) Sales Returns and Allowances Dec. 8 (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