Question 4 The following transactions are for Crane Company. 1. On December 3, Crane Company sold $479,600 of merchandise to Sheridan Co., terms 1/10, n/30. The cost of the merchandise sold was $325,500. 2. On December 8, Sheridan Co. was granted an allowance of $24,500 for merchandise purchased on December 3. 3. On December 13, Crane Company received the balance due from Sheridan Co. Prepare the journal entries to record these transactions on the books of Crane Company. Crane Company uses a perpetual inventory system. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit No. 1. (To record credit sale) (To record cost of merchandise sold) 2. 3. Dec. 13 (b) Assume that Crane Company received the balance due from Sheridan Co. on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit