Give the entries to record the following transactions engaged in by Westland Corporation, which SO 8 Purchases Involving Discounts general ledger; (3) maintaining the accounts receivable subsidiary ledger that includes the individual records of each customer; (4) maintaining the journals for recording sales, purchases, and cash receipts (some companies maintain separate journals to record frequent transactions); and (5) preparing monthly statements to be sent to customers. As a service to customers and employees, the company allows the accountant to cash cheques of up to 50 with money from the cash receipts. When deposits are made, the cheques are included in place of the cash receipts.

What weaknesses in internal control exist in this system? paid for the goods within the discount period. Give the entries (1) by the Fellini Company to record the purchase and payment and (2) by the Vance Company to record the sale and receipt of payment. Both companies use the periodic inventory system. uses the periodic inventory system:

Mar. 1 Sold goods on credit to Grano Company, terms \(2 / 10, \mathrm{n} / 30, \mathrm{FOB}\) shipping point, 500.

3 Accepted a return from Grano Company for full credit, 200.

10 Received payment from Grano Company for the purchase less the return and discount.

11 Sold goods on credit to Grano Company, terms \(2 / 10, \mathrm{n} / 30\), FOB destination, 800 .

31 Received payment for amount due from Grano Company for sale of March 11. uses the periodic inventory system:

July 2 Purchased goods on credit from Matts Company, terms \(2 / 10, \mathrm{n} / 30\), FOB destination, invoice dated July 1,800 .

6 Returned goods to Matts Company for full credit, 100 .

11 Paid Matts Company for purchase less return and discount.

14 Purchased goods on credit from Matts Company, terms \(2 / 10, \mathrm{n} / 30\), FOB destination, invoice dated July 12,900 .

31 Paid amount owed to Matts Company for purchase of July 14.