The transaction follows for Leland Company during October and November of the current year. Leeland uses a perpetual inventory system

Oct.2 Purchased merchandise on account from Gregory company at a cost of $35000, terms 2/10,n/30,FOB destination.

Oct4. The correct company paid freight charges of $900 to rail Company for shipping the merchandise purchased on onctober2.

Oct 5 Returned damaged goods having a gross involve cost of $6000 to Gregory Company. Received a credit for this.

Oct.11 Paid Gregory Company the balance owing for the October 2 purchase.

Oct 17 Sold the remaining merchandise purchased from Gregory company to Kurji Company for $62500, terms 2/10,n/30, FOB shipping point.

Oct.18 The correct company paid Intermodal Co. $800 freight costs for the October 17 sale.

Oct19 Issued Kurji Company a sales allowance of $2500 because of the goods did not meet kurji's exact specifications.

Oct.27 Received the balance owing from kurji Company for the October 17 sale.

Nov.1 Purchased merchandise on account Romeo Company at a cost of $60000, terms 1/15,n/30,FOB shipping point.

Nov.2 The correct company paid freight charges of $4000

Nov.5 Sold the merchandise purchased from Romeo Company to Bear Company for $11050, terms 2/10,n/30,FOB destination.

Nov.6 The correct company paid freight charges of $2600

Nov.7 Issued Bear Company a credit of $7000 for returned goods. these goods had cost Leeland $4050and were returned to inventory.

Nov.29 Received a cheque from Bear Company for the balance owing on the November 5 sale.

Nov.30 Paid Romeo Company the amount owing on the November 1 purchase