QUESTION 1 Below are the merchandising transactions between the seller (Lianjo) and the buyer (Jolian). March Transaction 4 Lianjo sold RM2,000 of merchandise on account, terms FOB destination, 5/10, n/30. The cost of the merchandise was RM1500 and the transportation charges of RM200 was paid as per the term. 6 Lianjo sold RM2,500 of merchandise on account, terms FOB shipping point, 2/10, n30. The cost of the merchandise was RM1600 and the transportation charges of RM250 was paid as per the term. 8 Jolian returned merchandise from the 4 March sale. Lianjo issued a RM300 credit memorandum. The cost of the merchandise return was RM180. 10 Jolian made a full payment on the 4 March sale. 15 Jolian purchased RM3,000 of merchandise on account FOB shipping point, 2/10, n/EOM. The transportation cost of RM300 was paid by Lianjo. The cost of merchandise was RM1,800. 17 Lianjo received payment from Jolian for 6 March transaction. 22 Jolian purchased RM3,000 of merchandise in cash, FOB shipping point. The transportation cost was RM300 and paid by Jolian. The cost of the merchandise was RM2,000. REQUIRED: (a) Prepare journal entries to record the above merchandising transactions for both the seller and the buyer. (30 Marks) (b) Explain the term FOB shipping point and FOB destination