Presented below are transactions related to Sayid Company.
1. On December 3, Sayid Company sold $570,000 of merchandise to Shephard Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $350,000.
2. On December 8, Shephard Co. was granted an allowance of $20,000 for merchandise purchased on December 3.
3. On December 13, Sayid Company received the balance due from Shephard Co.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Sayid Company using a perpetual inventory system.
(b) Assume that Sayid Company received the balance due from Shephard Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.