SPA Co. sold merchandise to Boyd Co. on account, $25,000, terms FOB shipping point, 2/10, n/30. The

Question:

SPA Co. sold merchandise to Boyd Co. on account, $25,000, terms FOB shipping point, 2/10, n/30. The cost of the merchandise sold is $16,000. SPA Co. paid freight of $675 and later received the amount due within the discount period. Journalize SPA Co.’s and Boyd Co.’s entries for the payment of the amount due.