Question

E5-5 Presented below are transactions related to R. Humphrey Company 1. On December 3, R. Humphrey Company sold $570,000 of merchandise to Frazier Co terms 1/10, n/30, FOB destination. R. Humphrey paid $400 for freight charges. The cost of the merchandise sold was $350,000 2. On December 8, Frazier Co. was granted an allowance of $20,000 for merchandise pur- chased on December 3 3. On December 13, R. Humphrey Company received the balance due from Frazier Co Instructions (a) Prepare the journal entries to record these transactions on the books of R. Humphrey Company using a perpetual inventory system (b) Assume that R. Humphrey Company received the balance due from Frazier 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