Problem
Sheffield Corporation, a private company following ASPE, uses a periodic inventory system. On July 1, Sheffield purchased $58,000 of inventory, terms 2/10, n/30, f.o.b. shipping point. Sheffield paid freight costs of $1,100. On July 3, Sheffield returned damaged goods and received a credit of $5,800. On July 10, Sheffield paid for the goods. Prepare all necessary journal entries for Sheffield.