The following transactions are for Larkspur Company.

On December $3,$ Larkspur Company sold $$512,700$ of merchandise to Crane Co$.,$ on account, terms $\frac{1}{10},\frac{n}{30}.$ The cost of the merchandise sold was $$321,500.$

On December $8,$ Crane Co$.$ was granted an allowance of $$26,000$ for merchandise purchased on December $3.$

On December $13,$ Larkspur Company received the balance due from Crane Co$.$

$($a$)$

Prepare the journal entries to record these transactions on the books of Larkspur. Larkspur uses a perpetual inventory system. $($If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Dec. $3$

Accounts Receivable

Sales Revenue

$($To record sale of merchandise on account$)$

Assume that Larkspur Company received the balance due from Crane Co$.$ on January $2$ of the following year instead of December $13.$ Prepare the journal entry to record the receipt of payment on January $2.($If no entry is required, select $"$No Entry" for the account titles and enter $O$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.$)$

Date Account Titles and Explanation

Debit

Credit

Jan. $2$