Suppose Bigriver.com sells 2,500 books on account for $11 each (cost of these books is $16,500) on October 10, 2018 to Letters and More. One hundred of these books (cost $660) were damaged in shipment, so Bigriver.com later received the damaged goods from Letters and More as sales returns on October 13, 2018. (Assume both companies use a perpetual inventory system and that sales are recorded at the net amount.) Read the requirements. Requirement 1. Journalize Letters and More's October 2018 transactions. (Record debits first, then credits. Exclude explanations from journal entries.) Oct. 10: Letters and More purchased 2,500 books on account for $11 each from Bigriver.com. Date Accounts Debit Credit Oct. 10 Oct. 13: Letters and More returned one hundred books damaged in shipment. Date Accounts Debit Credit Oct. 13 Requirement 2. Journalize Bigriver.com's October 2018 transactions. The company estimates sales returns at the end of each month. (Record debits first, then credits. Exclude explanations from journal entries.) Oct. 10: The sale of 2,500 books on account for $11 each (cost of these books is $16,500) to Letters and More. Begin by preparing the entry to journalize the sale portion of the transaction. Do not record the expense related to the sale. We will do that in the following step. Date Accounts Debit Credit Oct. 10 Now journalize the expense related to the October 10 sale. Date Accounts Debit Credit Oct. 10 Oct. 13: Letters and More returned one hundred books (cost $660) damaged in shipment. Start by preparing the entry to record the sales return. Do not update the Merchandise Inventory with this entry. We will do that in the following step. Date Accounts Debit Credit Oct. 13 Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise. Date Accounts Debit Credit Oct. 13