The transactions listed below are typical of those involving Southern Sporting Goods $($SSG$)$ and Sports R Us $($SRU$).$ SSG is a wholesale merchandiser and SRU is a retail merchandiser. Assume all sales of merchandise from SSG to SRU are made with terms $\frac{n}{30},$ and the two companies use perpetual invehtory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December $31.$

a$.$ SSG sold merchandise to SRU at a selling price of $$160,000.$ The merchandise had cost SSG $$108,000.$

b$.$ Two days later, SRU complained to SSG that some of the merchandise differed from what SRU had ordered. SSG agreed to give an allowance of $$6,500$ to SRU. SRU also returned sc$$me sporting goods, which had cost SSG $$15,500$ and had been sold to SRU for $$20,000.$ No further returns are expected

c$.$ Just three days later SRU paid SSG$,$ which settled all amounts owed.