Problem 5-6 Himalaya Company is a whole sale dealer of a special brand of bicycles. The company estimated that the cost of bicycles they keep for sale is $80 cach. The sale of bicycles to all customers is on terms 2/10,n/30, and FOB shipping point. On September 10, 20XX, Himalaya Company sold 200 bicycles to Everest Company at $100 each, the appropriate party paid $1,500 for freight charges. On September 12, 20XX, Everest Company returned 10 bicycles to Himalaya Company as they were badly damaged during transit On September 18, Himalaya Company collected cash from Everest Company on its accounts receivable balance. Instructions: a. Record journal entries on the above transactions in the books of Himalaya Company assuming that the company follows perpetual inventory system to record its merchandise transactions. b. Assuming that Everest Company follows periodic inventory system, record the journal entries on its transactions with Himalaya Company. a) Journal entries for Himalaya Company Date Account title Debit Credit b) Journal entries for Everest Company Date Account title Debit Credit