Prepare the journal entries for the following transactions:

a. Candy Cane Company engaged in the following transactions in August 20x3: Aug 2 Sold merchandise on account for $300,000; terms 2/10, n/30, FOB shipping point, freight collected. Aug 18 Aug 20 Received payment for the sale of August 2. A total of $10,000 of the merchandise sold on August 2 was returned, and a full refund was made because it was the wrong merchandise. An allowance of $16,000 was granted on the sale of August 2 because some of the merchandise was found to be damaged; $16,000 cash was returned to the customer. Aug 28 b. Henry's Hunting Outfitters Company engaged in the following transactions in July 20x4: July 3 Purchased merchandise on account at the cost of $140,000; terms 2/10,n/30, FOB shipping point, freight collected. July 6 Paid freight of $2,000 on the purchase of July 3. July 10 Sold good for $100,000; terms 2/10, n/30. July 12 Returned $24,000 of merchandise purchased on July 3. July 14 Paid the amount due on the purchase of July 3. P.R Account Titles and Explanation Date Debit Credit 5 2 3 0 1 2 3 -4 5 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41