On May 11, 2014, Wilson Purchasing purchased $29,000 of merchandise from Hostel Sales; terms 2/10, n/90, FOB Hostel Sales. The cost of the goods to Hostel was $24,000. Wilson paid $1,900 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $4,800 of goods to Hostel Sales, which restored them to inventory. The returned goods had cost Hostel $4,000. On May 20, Wilson mailed a cheque to Hostel for the amount owed on that date. Hostel received and recorded the cheque on May 21.

A)

1 Record the purchase of merchandise on credit; 2/10, n/90 .

2 Record the payament of shipping charges on purchased mechangdise.

3 Record the return of unacceptable merchandise.

4 Record the payment of balance within the discount period.

B)

1 Record sale of merchandise on account; 2/10, n/90.

2 Record cost of sale.

3 Record the entry for accepting a return from a customer.

4 Record the returning of goods to inventory.

5 Record the entry for receipt of balance within the discount period.