Question 4) The following transactions are for Sooney Company:

On December 3, Sooney Company sold $880,000 of merchandise to Rooney Co., terms 5/10, n/30. The cost of the merchandise sold was $520,000.

On December 8, Rooney Co. was granted an allowance of $38,000 for merchandise purchased on December 3.

On December 13, Sooney Company received the balance due from Rooney Co.

Instructions: A. Prepare the journal entries to record these transactions on the books of Sooney Company. Sooney uses a perpetual inventory system.

B. Assume that Sooney Company received the balance due from Rooney 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.