Sales Involving Discounts: Periodic Inventory System

E 6. Given the following transactions engaged in by Stanford Company, prepare journal entries and, assuming the periodic inventory system, determine the total amount received from Penkas Company. \

Mar. 1 Sold merchandise on credit to Penkas Company, terms 2/10, n/30, FOB shipping point, $1,000.

3 Accepted a return from Penkas Company for full credit, $400.

10 Collected amount due from Penkas Company for the sale, less the return and discount.

11 Sold merchandise on credit to Penkas Company, terms 2/10, n/30, FOB shipping point, $1,600.

31 Collected amount due from Penkas Company for the sale of March 11.