Prepare journal entries to record the transactions.

Problem 6-2

Journalize merchandise transactions on both buyers and sellers books (L.O. 1, 3, 4)

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

July 2	Mars Musical Instrument Company purchased merchandise on account with a list price of $48,000 from Tiger Company. The terms were 3/EOM, n/60, FOB shipping point, freight collect. Trade discounts of 15%, 10%, and 5% were granted by Tiger Company.
5	The buyer paid the freight bill on the purchase of July 2, $1,104.
6	The buyer returned 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 the necessary journal entries for the buyer and the seller.