b)

The following transactions are for Sheridan Company. 1. On December 3, Sheridan Company sold $613,400 of merchandise to Grouper Co. on account, terms 2/10, n/30, FoB destination. Sheridan paid $370 for freight charges. The cost of the merchandise sold was $354,500. 2. On December 8 , Grouper Co. was granted an allowance of $29.400 for merchandise purchased on December 3. 3. On December 13, Sheridan Company received the balance due from Grouper Co. Assume that Sheridan Company received the balance due from Grouper Co. on lanuary 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (Credit occount titles are outomatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.)