Question 2: P5-3A Presented here are selected transactions for Norlan Inc. during September of the current year. Norlan uses a perpetual inventory system.

Sept. 2	Purchased equipment on account for $65,000, terms n/30, FOB destination.
3	Freight charges of $950 were paid by the appropriate party on the September 2 purchase of equipment.
4	Purchased supplies for $4,000 cash.
6	Purchased inventory on account from Hillary Corp. at a cost of $65,000, terms 1/15, n/30, FOB shipping point.
7	Freight charges of $1,600 were paid by the appropriate party on the September 6 inventory purchase.
8	Returned damaged goods costing $5,000 that were originally purchased from Hillary on September 6. Received a credit on account.
9	Sold goods costing $15,000 to Fischer Limited for $20,000 on account, terms 2/10, n/30, FOB destination.
10	Freight charges of $375 were paid by the appropriate party on the September 9 sale of inventory.
17	Received the balance due from Fischer.
20	Paid Hillary the balance due.
21	Purchased inventory for $6,000 cash.
22	Sold inventory costing $20,000 to Kun-Tai Inc. for $27,000 on account, terms n/30, FOB shipping point.
23	Freight charges of $500 were paid by the appropriate party on the September 22 sale of inventory.
28	Kun-Tai returned goods sold for $10,000 that cost $7,500. The merchandise was restored to inventory.

P5-12A Data for Norlan Inc. are presented in P53A.

Instructions

(a) Record the September transactions on Norlans books, assuming it uses a periodic inventory system instead of a perpetual inventory system.

(b) Assume that Norlan did not take advantage of the 1% purchase discount offered by Hillary Corp. and paid Hillary on October 3 instead of September 20. Record the entry that Norlan would make on October 3 and determine the cost of missing this purchase discount to Norlan.