Dec. 2

Iron Company purchased goods from Wood Company in the amount of $20,000.

Terms: FOB Shipping Company, 3/10, net 60.

(Cost of goods to Wood was $12,000).

Dec. 3

Iron Company returned defective goods to Wood Company in the amount of $2,000

(Cost of goods to Wood was $1,200).

Dec. 10

Iron Company paid Wood Company for the above purchase.

REQUIRED:

Prepare all required journal entries to record the above transactions on the books of:

1. the Buyer assuming a Periodic Inventory System.

2. the Seller assuming a Perpetual Inventory System.

Iron Company purchased goods from Wood Company in the amount of $20,000 Dec. 2 Terms: FOB Shipping Company, 3/10, net 60. (Cost of goods to Wood was $12,000). Dec 3 Iron Company returned defective goods to Wood Company in the amount of $2,000 (Cost of goods to Wood was $1,200). Dec. 10 Iron Company paid Wood Company for the above purchase. REQUIRED: Prepare all required journal entries to record the above transactions on the books of: 1. the Buyer assuming a Periodic Inventory System 2. the Seller assuming a Perpetual Inventory System