The following selected transactions were completed during January between McGowan
Company and Xi Co.:
Jan. 1. McGowan Company sold merchandise on account to Xi Co., $28,600, terms FOB destination, 2/15, n/eom. The cost of the goods sold was $17,000.
2. McGowan Company paid freight of $500 for delivery of goods sold to Xi Co. on January 1.
6. Xi Co. returned $1,600 of merchandise purchased on account on January 1 from McGowan Company. The cost of the goods returned was $960.
16. Xi Co. paid McGowan Company for purchase of January 1, less discount and less return of January 6.
Instructions
Journalize the January transactions for
(1) McGowan Company
(2) Xi Co., assuming both companies use the perpetual inventory system.