Solutions for both sums

Thank you.

Problem 5-2A ving transactions occurred between Chao Pharmaceuticals and Hal's Drug Store of the current year. Both companies use the perpetual inventory system. during Feb Feb. Hall purchased $60,000 of merchandise from Chao on credit terms of 1/10, n/30, FOB shipping point. Separately, Hall paid a $1,000 bill for freight in. Chao invoiced Hall for $60,000 (these goods cost Chao $36,000). o Hall returned $5,000 of the merchandise purchased on February 6. Chao issued a credit memo for this amount and returned the goods to inventory (cost, $3,000). Hall paid $24,000 of the invoice amount owed to Chao for the February 6 purchase. Chao allows its customers to take the cash discount on partial payments. Hall paid the remaining amount owed to Chao for the February 6 purchase. 15 Required Journalize these transactions, first on the books of Hall Drug Store and second on the books of Chao Pharmaceuticals. Problem 5-3A Singh Distributing Company uses the perpetual inventory system and engaged in the following transactions during May of the current year: May 3 Purchased office supplies for cash, $11,000 7 Purchased inventory on credit terms of 3/10, net eom, $76,000. S Returned 10 Sold goods for cash, $17,000 (cost,$10,200), 13 Sold inventory on credit terms of 2/15, n/45, for $150,800, less $15,080 quantity 1b Paid the amount owed on account from the purchase of May 7, less the discount 17 25 percent of the inventory purchased on May 7. It was not the inventory ordered. discount offered to customers who purchased in large quantities (cost, $90,480). and the return. Received wrong-sized inventory as a sales return from May 13 sale, $12,400, which is the net amount after the quantity discount. Singh's cost of the inven- tory received was $7,440. Purchased inventory of $164,000 on account. Payment terms were 2/10, net 30. Paid supplier for goods purchased on May 18. 18 26 28 Received cash in full settlement of the account from the customer who pur- 31 Purchased chased inventory on May 13. inventory for cash, $84,000, less a quantity discount of $8,400, plus freight charges of $2,200