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Sales/Purchase Journal Entries Practice The following selected transactions were completed during May between Sky Company and Big Co. (NOTE: n/eom means due in full by

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Sales/Purchase Journal Entries Practice The following selected transactions were completed during May between Sky Company and Big Co. (NOTE: "n/eom" means "due in full by the end of the month): May 1 - Sky Company sold merchandise on account to Big Co. for $72,000, terms FOB destination, 2/15, n/eom. The cost of the merchandise sold was $43,200. May 3 - Big Co receives the merchandise shipped by Sky Company on May 1. May 5 - Sky Company sold merchandise on account to Big Co. for $48,500, terms FOB shipping point, n/eom. The cost of the merchandise sold was $30,000. May 6 - Big Co. returned $12,000 of merchandise purchased on account on May 1 from Sky Company. Sky Company's original cost of the returned merchandise was $7,200. May 9 - Big Co. paid freight of $1,800 on the May 5 purchase from Sky Company. May 15 - Sky Company sold merchandise on account to Big Co. for $64,000, term FOB shipping point, 1/10, n/30. Sky Company paid freight of $2,500, which was added to the invoice. The cost of the merchandise sold was $38,400. May 16 - Big Co. paid Sky Company for the plurchase of May 1, less discount and less return of May 6. May 25 - Big Co. paid Sky Company on account for purchase of May 15, less discount. May 31 - Big Co. paid Sky Company on account for purchase of May 5. Requirement 1: Journalize the May transactions for Big Co. (the buyer)

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