Raymond Company and Geeslin Company both use a perpetual inventory system. The following transactions occurred during the month of January:
Jan. 1 Raymond purchased $5,000 of merchandise on account from Geeslin with credit terms of 2/10, n/30. The cost of the merchandise was $3,750. Assume that Geeslin uses the net method to record sales discounts and no returns are expected at the time of sale.
8 Raymond returned $500 of the-merchandise to Geeslin. The cost of the merchandise returned was $375.
10 Raymond paid invoices totaling $3,000 to Geeslin for the merchandise purchased on January 1.
30 Raymond paid Geeslin the balance due
Required:
Prepare the journal entries to record these transactions on the books of Raymond and Geeslin. Tyler Company has the following information related to purchases and sales of one of its inventory items.