Reed Corp. is a medium-sized manufacturer of electronic components that supplies Brady Co. with many component parts. Brady Co. also supplies Reed with some of the finished products it develops. Hence, both companies purchase from and sell merchandise to each other. Both companies are located in Oregon, which has no sales tax, and both companies use a perpetual inventory system. Therefore, sales tax does not apply to any of these transactions and you should record merchandise transactions using the perpetual inventory method.

Analyze each transaction (described by rolling over the date) from the perspective of each party. In the first journal space, record each transaction as it affects Reed Corp., on the appropriate day. Then record the same transaction in the bottom journal space as it affects Brady Co.

If no entry is required, select "No entry required" and leave the amount boxes blank. If compound entries, for those boxes in which no entry is required, leave the box blank.

Answer all the questions, i will give u a thumb!

Brady Co. purchased $1,930 of merchandise on account from Reed Corp. The merchandise was sold on credit terms of 3/10, n/30 and shipping terms of FOB shipping point. The cost of the merchandise to the seller was $1,388. Freight costs of $137 were paid by Brady Co. in cash for the merchandise purchased the previous day. Reed Corp. purchased $800 of merchandise on account from Brady Co. The merchandise was sold on credit terms of 1/10, n/30 and shipping terms of FOB destination. The cost of the merchandise to the seller was $568. Freight costs of $55 were paid by Brady in cash for the merchandise sold the previous day. (Hint: When the seller pays the shipping cost without passing the cost on to the buyer, the seller will typically record that cost as Delivery Expense.) Reed Corp. issued a credit memo of $340 for merchandise returned from the May 2 purchase. The cost of the merchandise returned was $234. Reed Corp. received payment in full from Brady Co. for its May 2 purchase. Payment was not made in time to take the discount. Brady Co. received payment net of discount from Reed Corp. for its May 7 purchase. Payment was made in time to take the discount. Debit Credit Date May 2 Reed Corp. Accounts Receivable-Brady Co. Sales Cost of Goods Sold Merchandise Inventory May 3 No entry required No entry required May 7 Merchandise Inventory Accounts Payable-Brady Co. May 8 No entry required No entry required May 10 Sales Returns and Allowances Accounts Receivable-Brady Co. Merchandise Inventory Cost of Goods Sold May 14 Cash Accounts Receivable-Brady Co. V May 15 Accounts Payable-Brady Co. Cash Merchandise Inventory Brady Co. purchased $1,930 of merchandise on account from Reed Corp. The merchandise was sold on credit terms of 3/10, n/30 and shipping terms of FOB shipping point. The cost of the merchandise to the seller was $1,388. Freight costs of $137 were paid by Brady Co. in cash for the merchandise purchased the previous day. Reed Corp. purchased $800 of merchandise on account from Brady Co. The merchandise was sold on credit terms of 1/10, n/30 and shipping terms of FOB destination. The cost of the merchandise to the seller was $568. Freight costs of $55 were paid by Brady in cash for the merchandise sold the previous day. (Hint: When the seller pays the shipping cost without passing the cost on to the buyer, the seller will typically record that cost as Delivery Expense.) Reed Corp. issued a credit memo of $340 for merchandise returned from the May 2 purchase. The cost of the merchandise returned was $234. Reed Corp. received payment in full from Brady Co. for its May 2 purchase. Payment was not made in time to take the discount. Brady Co. received payment net of discount from Reed Corp. for its May 7 purchase. Payment was made in time to take the discount. | Date Debit Credit May 2 Brady Co. Merchandise Inventory Accounts Payable-Reed Corp. May 3 Merchandise Inventory Cash May 7 Accounts Receivable-Reed Corp. Sales Cost of Goods Sold Merchandise Inventory May 8 Delivery Expense Cash May 10 Accounts Payable-Reed Corp. Merchandise Inventory May 14 Accounts Payable-Reed Corp. Cash May 15 Cash Sales Discounts Accounts Receivable-Reed Corp