8)

Journalize the following transactions for the seller, Phillips Company, using the gross method to account for sales discounts. Assume a perpetual inventory system. Make sure to enter the day for each separate transaction. December 5 Sold goods costing $9,000 to Lee Company on account, $15,000, terms 4/10, n/30. The goods are sold FOB shipping point, freight prepaid by seller, $260. December 11 Lee Company returned damaged merchandise previously purchased on account, $3,600. December 15 Received the amount due from Lee Company. Note: The entry to record the shipping payment to the delivery company is not required in this problem. Date Account Title Debit Credit Z 5