The following transactions occurred between Chao Pharmaceuticals and Hall Drug Store during February of the current year. Both companies use the perpetual inventory system.
Feb. 6 Hall purchased $60,000 of merchandise from Chao on credit terms of 1/10, n/30, FOB shipping point. Separately, Hall paid a $1,000 bill for freight-in. Chao invoiced Hall for $60,000 (these goods cost Chao $36,000).
10 Hall returned $5,000 of the merchandise purchased on February 6. Chao issued a credit memo for this amount and returned the goods to inventory (cost, $3,000).
15 Hall paid $24,000 of the invoice amount owed to Chao for the February 6 purchase. Chao allows its customers to take the cash discount on partial payments.
27 Hall paid the remaining amount owed to Chao for the February 6 purchase.
Required
Journalize these transactions, first on the books of Hall Drug Store and second on the books of Chao Pharmaceuticals.