Presented below are transactions related to X Company 1. On December 3, Xu Company sold HK$500,000 of

Question:

Presented below are transactions related to Xü Company
1. On December 3, Xu Company sold HK$500,000 of merchandise to Hashmi Co., terms 2/10, n/30. FOB shipping point. The cost of the merchandise sold was HK$350,000.
2. On December 8, Hashmi Co, was granted an allowance of HK$27,000 for merchandise purchased on December 3.
3. On December 13, Xü Company received the balance due from Hashmi Co.

Instructions
(a) Prepare the journal entries to record these transactions on the books of Xu Company using a perpetual inventory system.
(b) Assume that Xü 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.