Data for Pippen Company and Thomas Co. are presented in E5-5.
In E5-5
Dec. 3 Pippen Company sold merchandise to Thomas Co. for $32,000, terms 2/10, n/30, FOB destination. This merchandise cost Pippen Company $18,000.
4 The correct company paid freight charges of $650.
8 Thomas Co. returned unwanted merchandise to Pippen. The returned merchandise had a sales price of $1,800 and a cost of $990. It was restored to inventory.
13 Pippen Company received the balance due from Thomas Co.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Pippen Company assuming a periodic inventory system is used instead of a perpetual system.
(b) Prepare the journal entries to record these transactions on the books of Thomas Co. assuming a periodic inventory system is used instead of a perpetual system.