Buy and Seller Entries 2 3 Franklin Retailing (buyer) and Sandord Wholesalers (seller) enter into the following transactions. 4 15-Feb Franklin accepts delivery of $36,000 of merchandise it purchases for resale from Sanford: invoice dated October 15, terms 3/10, n/90, FOB shipping point. The goods cost Sanford $24, 120 Franklin pays $460 cash to Speedy Shipping for delivery charges on the merchandise. 19-Feb Franklin returns $1,200 of the $36,000 of goods to Sanford, who receives them the same day and restores them to its inventory. The returned goods had cost Sanford $804 25-Feb Franklin pays Sanford for the amount owed. Sanford receives the cash immediately 7 8 (Both Franklin and Sanford use a perpetual inventory system and the gross method) 9 10 11 Instructions 12 1. Prepare journal entries that Franklin Retailing (buyer) records for these three transactions. 13 No Date General Journal Debit Credit 14 1 15 16 buyer and seller PROTECTED VIEW Be careful--files from the internet can contain vituses. Unless you need to edit, it's sales to stay in Protected View 45 X B D 2 18 9 20 3 21 22 23 4 24 25 26 27 28 2. Prepare journal entries that Sanford Wholesalers (seller) records for these three transactions. 29 No Date General Journal Debit Credit 30 1 31 32 2 33 34 35 36 3 37 38 39 4 buyer and seller