Prepare journal entries for the following transactions for both the seller (BMX) and buyer (Sanuk). May 4 BMX sold $1,500 of merchandise on account to Sanuk, terms FOB shipping point, n∕45, invoice dated May 4. The cost of the merchandise was $900. 6 Sanuk paid transportation charges of $30 on the May 4 purchase from BMX. 8 BMX sold $1,000 of merchandise on account to Sanuk, terms FOB destination, n∕15, invoice dated May 8. The cost of the merchandise was $700. This sale permitted returns for 30 days. 10 BMX paid transportation costs of $50 for delivery of merchandise sold to Sanuk on May 8. 16 BMX issued Sanuk a $200 credit memorandum for merchandise returned. The merchandise was purchased by Sanuk on account on May 8. The cost of the merchandise returned was $140. 18 BMX received payment from Sanuk for the May 8 purchase. 21 BMX sold $2,400 of merchandise on account to Sanuk, terms FOB shipping point, 2∕10, n∕EOM. The cost of the merchandise was $1,440. This sale permitted returns for 90 days. 31 BMX received payment from Sanuk for the May 21 purchase, less discount.

Question

Prepare journal entries for the following transactions for both the seller (BMX) and buyer (Sanuk).
May 4 BMX sold $1,500 of merchandise on account to Sanuk, terms FOB shipping point, n∕45, invoice
dated May 4. The cost of the merchandise was $900.
6 Sanuk paid transportation charges of $30 on the May 4 purchase from BMX.
8 BMX sold $1,000 of merchandise on account to Sanuk, terms FOB destination, n∕15, invoice
dated May 8. The cost of the merchandise was $700. This sale permitted returns for
30 days.
10 BMX paid transportation costs of $50 for delivery of merchandise sold to Sanuk on May 8.
16 BMX issued Sanuk a $200 credit memorandum for merchandise returned. The merchandise
was purchased by Sanuk on account on May 8. The cost of the merchandise returned
was $140.
18 BMX received payment from Sanuk for the May 8 purchase.
21 BMX sold $2,400 of merchandise on account to Sanuk, terms FOB shipping point, 2∕10,
n∕EOM. The cost of the merchandise was $1,440. This sale permitted returns for 90 days.
31 BMX received payment from Sanuk for the May 21 purchase, less discount.

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