Exercise 5-3

The following transactions are for Blossom Company.

1.		On December 3, Blossom Company sold $499,800 of merchandise to Sunland Co., terms 2/10, n/30. The cost of the merchandise sold was $317,400.
2.		On December 8, Sunland Co. was granted an allowance of $23,300 for merchandise purchased on December 3.
3.		On December 13, Blossom Company received the balance due from Sunland Co.

(a) Prepare the journal entries to record these transactions on the books of Blossom Company. Blossom Company uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

No.	Date	Account Titles and Explanation	Debit	Credit
1.	Dec. 3Dec. 8Dec. 13Jan .2
		(To record credit sale)
		(To record cost of merchandise sold)
2.	Dec. 3Dec. 8Dec. 13Jan .2
3.	Dec. 13

(b) Assume that Blossom Company received the balance due from Sunland Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
Dec. 3Dec. 8Dec. 13Jan .2

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