Shop-at-Home Company operates a Web grocer. Customers submit their orders online to Shop-at-Home Company; Shop-at-Home then forwards the orders to a national grocery chain. The grocery chain arranges for assembly and shipment of the order. Shop-at-Home Company receives 3% of the retail value of all orders it takes. During January, Shop-at-Home Company received orders for groceries with a retail selling price of $400,000. These groceries cost the grocery store chain $280,000. The grocery store chain collected cash of $400,000 from the customers and paid the appropriate commission in cash to Shop-at-Home Company. Based on this information, make all journal entries necessary in January

(1) On the books of Shop-at-Home Company and

(2) On the books of the grocery store chain. Assume that the grocery store chain uses a perpetual inventory system.