Prepare journal entries for the transactions. Merchandising. Correct terms need to be use, also please provide details, step by step. I am having a hard time understanding. Thanks
Alternate problem B Edwardo Auto Parts Company and Spoon Company engaged in the following transactions with each other during August 2010:
Aug.15 Edwardo Auto Parts Company purchased merchandise on account with a list price of $ 192,000 from Spoon Company. Trade discounts of 20 per cent and 10 per cent were allowed. Terms were 2/10, n/30, FOB destination, freight prepaid.
16 The seller paid the freight charges, $ 2,400.
17 The buyer requested an allowance of $ 4,512 against the amount due because the goods were damaged in transit.
20 The seller granted the allowance requested on August 17.
The buyer paid the amount due on the last day of the discount period. Record all of the entries required on the books of both the buyer and the seller.