Exercise 5-04 The following transactions are for Teal Mountain Company. 1. 2. On December 3, Teal Mountain Company sold $512,300 of merchandise to Sandhill Co., on account, terms 2/10, n/30. The cost of the merchandise sold was $313,500. On December 8, Sandhill Co. was granted an allowance of $22,900 for merchandise purchased on December 3. On December 13, Teal Mountain Company received the balance due from Sandhill Co. 3. (a) Prepare the journal entries to record these transactions on the books of Teal Mountain. Teal Mountain uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) No. Date Account Titles and Explanation Debit Credit 1. (To record sale of merchandise on account) (To record cost of merchandise sold on account) 2. 3. Assume that Teal Mountain Company received the balance due from Sandhill Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account tities and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Debit Credit Date Account Titles and Explanation Jan. 2