On May 11, 2020, Wilson Purchasing purchased $26,500 of merchandise from Happy Sales; terms 3/10, n/90, FOB Happy Sales. The cost of the goods to Happy was $21,500. Wilson paid $1,650 to Express Shipping Service for the delivery charges on the merchandise on May 11. On May 12, Wilson returned $4,300 of goods to Happy Sales, which restored them to inventory. The returned goods had cost Happy $3,500. 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. Assume that Wilson uses a perpetual inventory system.

b. Present the journal entries that Happy Sales should record for these transactions. Assume that Happy uses a perpetual inventory system.