PLEASE CHEGG HELP THIS IS PART ONE OF A TWO PART QUESTION PLEASE HELP ME ANSWER IT ALL

1) Merchandising Activities (17 points) The following is a series of related transactions between Prime Fashion and Mega Store, a chain of retail clothing stores:

Jun. 01 Prime Fashion sells to Mega Store 200 T-Shirts on account, terms 02/10, n/30. Prime Fashion bought each T-Shirt for $2.50 and sells it for $7.50 per T-Shirt to Mega Store.

Jun. 04 Mega Store returns 50 T-Shirts to Prime Fashion, since they have the wrong color.

Jun. 09 Mega Store pays the remaining balance to Prime Fashion.

Instructions: (a) Record this series of transactions in the General Journal of Prime Fashion.

(The company uses the perpetual inventory system and records at gross costs).

(b) Record this series of transactions in the General Journal of Mega Store.

(The company uses the periodic inventory system and records at net costs).

date account titles debit credit

2) Merchandising Activities (12 points) One Lightning Corp. sold merchandise for $450 which cost them $200 on account. The customer was dissatisfied with some of the goods and returned $100 worth (sales price) and received a cash refund. Instructions:

(a) What Journal Entries should One Lightning Corp. enter at the time sold and at the time of the return? Assume that One Lightning Corp. uses a Perpetual Inventory System.

date account titles debit credit time of return