The following transactions are for C. Pippen Company:

1. On December 3 C. Pippen Company sold \(\$ 400,000\) of merchandise to I. Thomas Co., terms \(2 / 10, \mathrm{n} / 30\). The cost of the merchandise sold was \(\$ 320,000\).

2. On December 8 I. Thomas Co. was granted an allowance of \(\$ 20,000\) for merchandise purchased on December 3.

3. On December 13 C. Pippen Company received the balance due from I. Thomas Co.

\section*{Instructions}

(a) Prepare the journal entries to record these transactions on the books of C. Pippen Company.

(b) Assume that C. Pippen Company received the balance due from I. Thomas 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 .