Presented below are transactions related to Lofl in Company.
1. On December 3, Lofl in Company sold $600,000 of merchandise to Honor Co., terms 2/10, n/30, FOB destination. Lofl in paid $500 for freight charges. The cost of the merchandise sold was $200,000.
2. On December 8, Honor Co. was granted an allowance of $40,000 for merchandise purchased on December 3.
3. On December 13, Lofl in Company received the balance due from Honor Co.

Instructions
a. Prepare the journal entries to record these transactions on the books of Lofl in Company using a perpetual inventory system. Omit explanations.
b. Assume that Lofl in Company received the balance due from Honor 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. Omit explanations.