Short Exercise 5 - 6 Journalizing purchase and sales transactions

Suppose Piranha.com sells 3,500 books on account for $17 each (cost of these books is $35,700) on October 10, 2018 to The Textbook Store. One hundred of these books (cost $1,020) were damaged in shipment, so Piranha.com later received the damaged goods from The Textbook Stores as sales returns on October 13, 2018.

Requirements

1. Journalize The Textbook Store's October 2018 transactions. The company estimates sales returns at the end of each month.

2. Journalize Piranha.com's October 2018 transactions. The company estimates sales returns at the end of each month.