this is accounting concept 1

Question 3 [20 points] Given the following, prepare the entries that both the purchaser and seller should record for these transactions. Assume both companies use a perpetual inventory system. a. August 12: Southgate Inc. sold merchandise that cost $7,200 to Bentley Inc, for $9,000 under credit terms of 2/15, n/60, FOB shipping point. b. August 19: Southgate Inc. issued a $700 credit memorandum to Bentley Inc. for an allowance on goods sold on August 12. c. August 23: Bentley Inc. paid Southgate Inc. the balance due. Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (Le., January 15 would be 15/Jan). Please use the *+' and '- buttons to change the number of accounts (if necessary) for each journal entry a) Bentley Inc. b) Southgate Inc. General Journal Page GJ9 General Journal Page GJ2 Date Account/Explanation F Debit Credit Date Account/Explanation F Debit Credit +- += + 1 + +