On May 11, 2020, Wilson Purchasing purchased $30,000 of merchandise from Hostel Sales; terms 3/10, n/90, FOB Hostel Sales. The cost of the goods to Hostel was $20,000. Wilson issued cheque #84 in the amount of $335 to pay Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $1,200 of goods to Hostel Sales, which restored them to inventory. The returned goods had cost Hostel $800. On May 20, Wilson mailed cheque #85 to Hostel for the amount owed on that date. Hostel received and recorded the cheque on May 21.

Required

1. Record the transactions for Wilson Purchasing in a purchases journal, cash disbursements journal, and general journal as appropriate.

2. Record the transactions for Hostel Sales in a sales journal, cash receipts journal, and general journal as appropriate assuming a perpetual inventory system. Also assume invoice #1601 for the May 11 sale.