West Co. sold merchandise to J.S. Custom Co. on account, $20,500, terms FOB shipping point, 2/10, n/30.

Question:

West Co. sold merchandise to J.S. Custom Co. on account, $20,500, terms FOB shipping point, 2/10, n/30. The cost of the goods sold is $10,000. West Co. paid freight of $500 and later received the amount due within the discount period. Journalize West Co.'s and J.S. Custom Co.'s entries for the payment of the amount due.