a. Candle Carpet Company engaged in the following transactions in August 1999:

Aug. 2 Sold merchandise on account for \(\$ 300,000\); terms \(2 / 10, n / 30\), FOB shipping point, freight collect.

18 Received payment for the sale of August 2.

20 A total of \(\$ 10,000\) of the merchandise sold on August 2 was returned, and a full refund was made because it was the wrong merchandise.

28 An allowance of \(\$ 16,000\) was granted on the sale of August 2 because some merchandise was found to be damaged; \(\$ 16,000\) cash was returned to the customer.

b. Lee Furniture Company engaged in the following transactions in August 1999:

Aug. 4 Purchased merchandise on account at a cost of \(\$ 140,000\); terms \(2 / 10, n / 30\), FOB shipping point, freight collect.

6 Paid freight of \(\$ 2,000\) on the purchase of August 4 .

10 Sold goods for \(\$ 100,000\); terms \(2 / 10, \mathrm{n} / 30\).

12 Returned \(\$ 24,000\) of the merchandise purchased on August 4.

14 Paid the amount due on the purchase of August 4.