On May 11, 2023, Witson Purchasing purchased $24,500 of merchandise from Happy Sales; terms 2/10,...
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On May 11, 2023, Witson Purchasing purchased $24,500 of merchandise from Happy Sales; terms 2/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $19,500. Wilson paid \$1,450 to Fxpress Shipping Service for the dellvery charges on the merchandise on May 11. On May 12. Wilson returned $3.900 of goods to Happy Sales, which restored them to inventory. The retutned goods had cost Happy \$3,100. On May 20, Wison malled a cheque to Happy for the amount owed on that date. Hoppy recelved and recorded the cheque on May 21 . Required: o. Present the journal entries that Wilson Purchasing should record for these transactions. Assume that Wilson uses a perpetual inventory system. b. Present the journal entries that Happy Sales should record for these transactions. Assume that Happy uses a perpetual inventory system. Journal entry worksheet Analysis Component: Assume that the buyer, Wilson Purchasing. borrowed enough cash to pay the balance on the last day of the discount perlod at an annual interest rate of 3% and paid it back on the last day of the credit period. Calculate how much the buyer saved by following this strategy. (Use o 365.day year. Round intermediate colculations and final answer to 2 decimal places.)
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