2. The following information is available:

1. On August 9, Glaxo Company sold merchandise worth $29,000 to Shacks Company , under the terms FOB Shipping Point, 2/15, n/45. The freight cost of $200 was paid on the sam day by the appropriate party. The goods sold had a cost of $15,000.

2. Upon arrival of the merchandise, some goods were found faulty thus goods worth $2,000 were returned to the seller, on August 10. Returned goods had a cost of $700.

3. On August 24, the final settlement of the money due was made between the two companies.

Required:

1. Write the journal entries for Glaxo Company, assuming that the company follows periodic inventory system.

2. Write the journal entries for Shacks Company, assuming that the company follows perpetual inventory system.