Presented below are transactions related to Wheeler Company.
1. On December 3, Wheeler Company sold $500,000 of merchandise to Hashmi Co., terms 2/10, n/30, FOB shipping point.The cost of the merchandise sold was $350,000.
2. On December 8, Hashmi Co. was granted an allowance of $27,000 for merchandise purchased on December 3.
3. On December 13, Wheeler Company received the balance due from Hashmi Co.
Instructions
(a) Prepare the journal entries to record these transactions on the books of Wheeler Company using a perpetual inventory system.
(b) Assume that Wheeler Company received the balance due from Hashmi 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.