Prepare the journal entries for both the sellers and buyers books assuming both companies use a periodic inventory approach:

Seller:

January 3: Sold $3000 of merchandise on account, terms 1/10, n/30

January 8: Defective merchandise of $200 was returned to the seller

January 10: Received payment for the balance due.

Buyer:

January 3: Purchased merchandise on account $3000

January 8: Returned $200 of the merchandise

January 10: Paid the balance due

2. The Wacky Widget Company uses a periodic inventory approach. The units of items available for sale during the year are as follows:

January 1: Beginning Inventory 90units@$54 each

March 10: Purchase 112units@$55 each

August 30: Purchase 100units@$58each

December 12: Purchase 98units@$60each

There are 104 units of the item in the physical inventory on December 31. Determine the cost of the ending inventory and the cost of merchandise sold under the FIFO, LIFO and Weighted Average Cost methods.