(A)Presented below are transactions related to Sandhill Company.

1.On December 3, Sandhill Company sold $593,100of merchandise on account to Indigo Co., terms2/10, n/30, FOB destination. Sandhill paid $350 for freight charges. The cost of the merchandise sold was $386,700.2.On December 8, Indigo Co. was granted an allowance of $28,400for merchandise purchased on December 3.3.On December 13, Sandhill Company received the balance due from Indigo Co.

Prepare the journal entries to record these transactions on the books of Sandhill Company using a perpetual inventory system.

(B)Assume that Sandhill Company received the balance due from Indigo 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