Now assume that Stonecreek Outfitters is an authorized reseller of L.L. Bean boots and that almost all resellers take advantage of the discount LL Bean offers to them for paying within 10 days.

1. Journal entry 1: On January 4, 2016, L.L. Bean receives an order from Stonecreek Outfitters for $2,500 and ships the order that same day. Terms of the invoice are 5/10, net 30.
2. Journal entry 2: On January 12, 2016, Stonecreek pays its invoice to L.L. Bean.