1. On December 3, Larkspur Company sold $512,700 of merchandise to Crane Co., on account, terms 1/10, n/30. The cost of the merchandise sold was $321,500. 2. On December 8, Crane Co. was granted an allowance of $26,000 for merchandise purchased on December 3. 3. On December 13, Larkspur Company received the balance due from Crane Co. (a) Prepare the journal entries to record these transactions on the books of Larkspur. Larkspur uses a perpetual inventory system. (If no entry is required, select "No Entry for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1 (To record sale of merchandise on account) 4 (To record cost of merchandise sold on account) 2. 3. 4 (b) Assume that Larkspur Company received the balance due from Crane 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. (if no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 2