The following transactions are for Pippen Company:

1. On December 3 Pippen Company sold $480,000 of merchandise to Barkley Co., terms 2/10, n/30. The cost of the merchandise sold was $320,000.

2. On December 8 Barkley Co. was granted an allowance of $20,000 for merchandise purchased on December 3.

3. On December 13 Pippen Company received the balance due from Barkley Co.

Instructions

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

(b) Assume that Pippen Company received the balance due from Barkley 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.