Current Attempt in Progress

The following merchandise transactions occurred in December. Both companies use a perpetual inventory system.

Dec. $3$ Whispering Winds Ltd$.$ sold goods to Ayayai Corp. for $$54,400,$ terms n$/15,$ FOB shipping point. The inventory had

cost Whispering Winds $$28,800.$ Whispering Winds's management expected a return rate of $3\%$ based on prior

experience.

$7$ Shipping costs of $$720$ were paid by the appropriate company.Record the above transactions in the books of Ayayai. $($List all debit entries before credit entries. Credit account titles are automatically

indented when the amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for

the amounts. Record journal entries in the order presented in the problem.$)$

Date

Account Titles and Explanation

Debit

Credit

$8$ Ayayai returned unwanted merchandise to Whispering Winds. The returned merchandise has a sales price of $$1,680,$

and a cost of $$920.$ It was restored to inventory.

$11$ Whispering Winds received the balance due from Ayayai.