a.Using the perpetual inventory system, journalize the entries for the following transactions:

January 1 Sold merchandise on account to Silver Company, $23,000 terms FOB shipping point, n/30. The cost of merchandise sold is $10,000

January 5 Sold merchandise for cash to Pink Company for $50,000 plus 5% sales tax. The cost of the merchandise sold is $24,000

January 14 Issued a credit memo for $2,100 to Silver Company for merchandise returned from the sale on January 1st. The cost of the merchandise returned was $1,100

January 28 Received a check for the amount due from Silver Company for the sale of January 1st less the credit memo of January 14th

b.

Using the perpetual inventory system, journalize the entries for the following transactions:

Feb 1 Purchased merchandise form Red Co. $35,000 terms 2/10, n/30 FOB destination (shipping costs were $600)

Feb 6 Issued a debit memo to Red Co. for $2,000 of merchandise returned from the purchase on February 1st.

Feb 27 Paid Red Co. for the invoice of February 1st less debit memo of February 6th.