Suppose Piranha.com sells 3,500 books on account for $17 each (cost of these books is $35,700) on October 10, 2018 to The Textbook Store. One hundred of these books (cost $1,020) were damaged in shipment, so Piranha.com later received the damaged goods from The Textbook Store as sales returns on October 13, 2018. (Assume both companies use a perpetual inventory system and that sales are recorded at the net amount.) 1. Journalize The Textbook Store's October 2018 transactions. 2. Journalize Piranha.com's October 2018 transactions. The company estimates sales returns at the end of each month. Requirement 1. Journalize The Textbook Store's October 2018 transactions. (Record debits first, the Exclude explanations from journal entries.) Oct. 10: The Textbook Store purchased 3,500 books on account for $17 each from Piranha.com. Date Accounts Oct. 10 Merchandise Inventory Accounts Payable Debit Credit 59500 59500 Oct. 13: The Textbook Store returned one hundred books damaged in shipment. Date Accounts Oct. 13 Accounts Payable Merchandise Inventory Debit Credit 1000 1000 Requirement 2. Journalize Piranha.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 3,500 books on account for $17 each (cost of these books is $35,700) to The Textbook Store. 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 Oct. 10 Accounts Debit Credit Now journalize the expense related to the October 10 sale. Date Oct. 10 Accounts Debit Credit Oct. 13: The Textbook Store returned one hundred books (cost $1,020) 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 Oct. 13 Accounts Debit Credit Now prepare the entry to update the Merchandise Inventory account for the cost of the returned merchandise. Date Oct. 13 Accounts Debit Credit