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

Dec. 3		Oriole Company sold merchandise to Thomas Co. for $40,000, terms 2/10, n/30, FOB destination. This merchandise cost Oriole Company $18,000.
4		The correct company paid freight charges of $675.
8		Thomas Co. returned unwanted merchandise to Oriole. The returned merchandise had a sales price of $2,100 and a cost of $990. It was restored to inventory.
13		Oriole Company received the balance due from Thomas Co.

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 enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 3Dec. 4Dec. 8Dec. 13
	(To record sales on account.)
Dec. 3Dec. 4Dec. 8Dec. 13
	(To record cost of goods sold.)
Dec. 3Dec. 4Dec. 8Dec. 13
	(Cash payment for freight costs.)
Dec. 3Dec. 4Dec. 8Dec. 13
	(To record credit for goods returned.)
Dec. 3Dec. 4Dec. 8Dec. 13
	(To record cost of goods returned.)
Dec. 13
	(Collection on account.)

Prepare the journal entries to record these transactions on the books of Thomas Co. (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 enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 3Dec. 4Dec. 8Dec. 13
	(Purchase on account.)
Dec. 3Dec. 4Dec. 8Dec. 13
Dec. 3Dec. 4Dec. 8Dec. 13
	(To record purchase return.)
Dec. 3Dec. 4Dec. 8Dec. 13
	(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
Dec. 13Dec. 8Dec. 1Dec. 31Dec. 3		Dec. 8Dec. 3Dec. 1Dec. 13Dec. 31
Dec. 31Dec. 1Dec. 13Dec. 3Dec. 8		Dec. 8Dec. 31Dec. 3Dec. 1Dec. 13
Dec. 31Dec. 3Dec. 1Dec. 13Dec. 8		Dec. 3Dec. 1Dec. 8Dec. 31Dec. 13

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