University Wholesale Company purchases merchandise from a variety of manufacturers and sells the merchandise to a variety of retail stores. All sales are subject to a cash discount (terms of 2/10, n/30). University uses a perpetual inventory system. The following transactions occurred during the month of February:

Feb. 2Purchased $18,600 of merchandise from Caroline Manufacturing; terms are 1/10, n/30.

Feb. 5Paid $750 freight bill for the February 2 purchase.

Feb. 11Paid Caroline for the February 2 purchase.

Feb. 17University receives a $420 allowance on the February 13 purchase from Taylor since some of the merchandise was the wrong color.

Feb. 21Sold merchandise for $3,000 to Valley Co. on account (cost of the merchandise sold was $1,250); terms 3/10, n/45.

Feb. 25Valley Co. returns 10% of the merchandise that it previously purchased on February 21.

Feb. 28Receives payment from Valley Co. for the sale on February 21.

Required

Prepare the journal entries for each of the transactions listed above.