The following transactions are for Sunland Company. 1. On December 3, Sunland Company sold $450,000...
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The following transactions are for Sunland Company. 1. On December 3, Sunland Company sold $450,000 of merchandise to Blossom Co., terms 1/10, n/30. The cost of the merchandise sold was $310,000. 2. On December 8, Blossom Co. was granted an allowance of $22,000 for merchandise purchased on December 3 3. On December 13, Sunland Company received the balance due from Blossom Co.
(a) Prepare the journal entries to record these transactions on the books of Sunland Company. Sunland 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.)
(b) Assume that Sunland Company received the balance due from Blossom 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.)
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