Net sales Cost of goods sold Gross profit from sales Operating expenses Profit (loss) a b $ 210,300 $ 165,300 75.300 42,100 d 303,100 e 109,200 92,100 206,100 76,200 93,100 (30.900) eBook Print References (5,400) 106,100 57,100 (27,900)

On May 11, 2023, Wilson Purchasing purchased $20,000 of merchandise from Happy Sales; terms 2/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $15,000. Wilson paid $1,000 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $3,000 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $2,200. On May 20, Wilson mailed a cheque to Happy for the amount owed on that date. Happy received and recorded the cheque on May 21.

Required:

a. Present the journal entries that Wilson Purchasing should record for these transactions assuming a periodic inventory system.

b. Present the journal entries that Happy Sales should record for these transactions assuming a periodic inventory system.