Required information

$[$The following information applies to the questions displayed below.$]$

The transactions listed below are typical of those involving Southern Sporting Goods $($SSG$)$ and Sports R Us $($SRU$).$ SSG is

a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made

with terms $\frac{n}{30},$ and the two companies use perpetual inventory systems. Assume the following transactions between the

two companies occurred in the order listed during the year ended December $31.$

a$.$ SSG sold merchandise to SRU at a selling price of $$140,000.$ The merchandise had cost SSG $$100,000.$

b$.$ Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG

agreed to give an allowance of $$4,500$ to SRU. SRU also returned some sporting goods, which had cost SSG $$13,500$

and had been sold to SRU for $$18,000.$ No further returns are expected.

c$.$ Just three days later SRU paid SSG$,$ which settled all amounts owed.

Required:

Prepare the journal entries SSG would record.

Note: If no entry is required for a transaction or event, select $"$No Journal Entry Required" in the first account field.

Journal entry worksheet

Record the sales on account of $$140,000$ to SRU.