Exercise #1 Adams Co. had the following transactions related to the sale of merchandise during November: Nov 8 Sold merchandise costing $5,100 on account to Smith Corp. for $15,300, terms, 2/10,n/30, FOB Shipping Point. 10 Smith Corp. returned $330 of merchandise (cost $110). 18 Received the amount due from Smith Corp. Instructions (a) Prepare the general journal entries to record the sale transactions on the books of Adams Co. in the general journal below. (b) What is net sales? Sales less: Sales Returns and Allowances less: Sales Discounts equals: Net Sales Date Account Titles PR Debit Credit Exercise #2 Chester Co. had the following transactions related to the sale of merchandise during May: May 3 Sold merchandise costing $8,400 on account to Juarez Corp. for $16,800, terms, 2/10, 1/30, FOB Destination. Chester Co. paid $200 cash for freight charges to UBS Freight Co. 4 In order to match a competitor's lower price, Chester agree to reduce the selling price of the merchandise sold to Juarez Corp. on May 3 by $600. 13 Received the amount due from Juarez Corp. Instructions (a) Prepare the general journal entries to record the sale transactions on the books of Chester Co. in the general journal below. (b) What is net sales? Sales less: Sales Returns and Allowances less: Sales Discounts equals: Net Sales (C) Assume that Chester Company received the balance due from Juarez Co. on May 31 instead of May 13. How would the entries in part (a) change? Date Account Titles PR Debit Credit