Presented below are transactions related toWheeler Company

1. On December 3, Wheeler Company sold$500,000 of merchandise to Hashmi Co., terms 2/10, n/30, FOBshipping point. The cost of the merchandise sold was$350,000.

2. On December 8, Hashmi Co. was granted anallowance of $27,000 for merchandise purchase on December3.

3. On December 13, Wheeler Company receivedthe balance due from Hashmi Co.

Instructions:

(a) Prepare the journal entries to recordthese transactions on the books of Wheeler Company using aperpetual inventory system.

(b) Assume that Wheeler Company receivedthe balance due from Hasmi Co. on January 2 of the following yearinstead of December 13. Prepare the journal entry to record thereceipt of payment on January 2.

Please Show All Work, Thank You.