Company $\mathrm{R}$ and Company S entered into the following transactions.

a. Company $R$ sold merchandise to Company $\mathrm{S}$ for $\$ 40,000$, terms $2 / 10, \mathbf{n} / 30$.

b. Prior to payment, Company $\mathrm{S}$ returned $\$ 3,000$ of the merchandise for credit.

c. Company S paid Company $\mathrm{R}$ in full within the discount period.

d. Company S paid Company R in full after the discount period. (Assume that transaction

(c) did not occur.)

Required:

Analysis of Allowance for Bad Debts Prepare journal entries to record the transactions for Company $\mathbf{R}$ (the seller).