The following merchandise transactions occurred in January. Pippen Company uses a perpetual inventory system and the contractbased approach to revenue recognition. Pippen Company has a stated policy that all sales are final-no returns or exchanges. Dec. Pippen Company sold merchandise to Thomas Co. for $32,000, terms 2/10,n/30,FOB destination. This merchandise cost 3 Pippen Company $18,000. 4 The correct company paid freight charges of $650. 8 Pippen Company sold merchandise to Frito Warehouse Store for $13,000, terms 2/10,n/30, FOB shipping point. The merchandise cost Pippen Company $7,250. 9 The correct company paid freight charges of $150. 13 Pippen Company received the balance due from Thomas Co. 29 Pippen Company recelved the balance due from Frito Warehouse Store. Date Account Titles Debit Credit (To record sales on account.) (To record cost of goods sold.) (To record sales on account.) (To record sales on account.) (To record cost of goods sold.)