Vargo Company engaged in the following transactions in
August 2011:
Aug. 7 Sold merchandise on credit to Ken Smith, terms n/30, FOB shipping point, $3,000 (cost, $1,800).
8 Purchased merchandise on credit from Novak Company, terms n/30, FOB shipping point, $6,000.
9 Paid Smart Company for shipping charges on merchandise purchased on August 8, $254.
10 Purchased merchandise on credit from Mara's Company, terms n/30, FOB shipping point, $9,600, including $600 freight costs paid by Sewall.
14 Sold merchandise on credit to Rose Milito, terms n/30, FOB shipping point, $2,400 (cost, $1,440).
14 Returned damaged merchandise received from Novak Company on August 8 for credit, $600.
17 Received check from Ken Smith for his purchase of August 7.
19 Sold merchandise for cash, $1,800 (cost, $1,080).
20 Paid Mara's Company for purchase of August 10.
21 Paid Novak Company the balance from the transactions of August 8 and August 14.
24 Accepted from Rose Milito a return of merchandise, which was put back in inventory, $200 (cost, $120).
Required: Prepare entries in journal form to record the transactions, assuming use of the perpetual inventory system.