Exercise 5-05 a-b (Video) Presented below are transactions related to Sunland Company. 1. On Decembe

Exercise 5-05 a-b (Video)

Presented below are transactions related to Sunland Company.

1. On December 3, Sunland Company sold $650,000 of merchandise on account to Culver Co., terms 2/10, n/30, FOB destination. Sunland paid $300 for freight charges. The cost of the merchandise sold was $353,600.

2. On December 8, Culver Co. was granted an allowance of $29,500 for merchandise purchased on December 3.

3. On December 13, Sunland Company received the balance due from Culver Co.

Prepare the journal entries to record these transactions on the books of Sunland Company using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Assume that Sunland Company received the balance due from Culver 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. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

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