Bill Diamond owns a business called Diamond Distributors. The following transactions took place during January of the current year. Journalize the transactions in a general journal using the periodic inventory method.
Jan. 5 Purchased merchandise on account from Prestigious Jewelers, $3,700.
8 Paid freight charge on merchandise purchased, $200.
12 Sold merchandise on account to Diamonds Unlimited, $4,900.
15 Received a credit memo from Prestigious Jewelers for merchandise returned, $600.
22 Issued a credit memo to Diamonds Unlimited for merchandise returned, $800.