Exercise 5-6 (Part Level Submission)

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

Dec.3Pictou Ltd. sold $19,901 of merchandise to Thames Corp., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $10,100.

7Shipping costs of $422 were paid by the appropriate company.8Thames returned unwanted merchandise to Pictou. The returned merchandise has a sales price of $1,300, and a cost of $674. It was restored to inventory.

11Pictou received the balance due from Thames.

(a)

Record the above transactions in the books of Pictou(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. Round answers to the nearest whole dollar, e.g. 5,275.)