Mars Musical Instrument Company and Tiger Company entered into the following transactions with each other during July 2012:

July 2nd	Mars Musical Instrument Company purchased merchandise on account with a list price of $48,000 from the Tiger Company. The terms were 3/EOM, n/60, FOB shipping point, freight collect. Tiger Company granted commercial discounts of 15%, 10% and 5%.
5	The buyer paid the freight bill on the July 2 purchase of $1,104.
6	The buyer returned the damaged merchandise with an invoice price of $2,790 to the seller and received full credit.

On the last day of the discount period, the buyer paid the seller for the merchandise.

Prepare all necessary journal entries for the buyer and the seller.

Answer rating: 100% (QA)

Buyer Mars Musical Instrument Company July 2 Merchandise Inventory Debit 48000 7200 40800 Accounts P... View the full answer