Merchandising Operations

Prepare journal entries for the following transactions for XYZ Startup Company (the buyer):

1. June 1, XYZ Startup Company purchased inventory on account from Amazon, $4500.
2. Upon delivery of the goods on June 6, XYZ Startup Company (the buyer) pays Freight Company $250 for freight charges. June 7, XYZ Startup Company returned to Amazon goods costing $200.
3. June 7. Amazon granted a purchase allowance of $100 from the purchase price
4. XYZ Startup Company pays the balance due of $4200 (gross invoice price of $4500 less purchase returns and allowances of $300) on June 14, the last day of the discount period. Credit terms are 2/14, n/30.

Prepare journal entries for the following transactions for Amazon (the seller):

1. June 1, Amazon sold inventory to XYZ Startup Company on account, $4500. Cost of goods sold is $2500.
2. Upon delivery of the goods on June 6, Amazon (the seller) pays Freight Company $250 for freight charges.
3. June 7, XYZ Startup Company returned to Amazon goods costing $200. Assume the goods are not defective. Cost of goods sold is $80.
4. June 7, XYZ Startup Company returned to Amazon goods costing $200. Assume the goods are defective. Scrap value of the goods is $30.
5. XYZ Startup Company pays the balance due of $4100 (gross invoice price of $4500 less purchase returns and allowances of $400) on June 14, the last day of the discount period. Credit terms are 2/14, n/30.

please solve with detailed explanation