Prepare journal entries to record the following merchandising 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, ny45, invoice dated May 4. The cost of the merchandise was $900.
May 6 Sanuk paid transportation charges of $30 on the May 4 purchase from BMX.
May 8 BMX sold $1,000 of merchandise on account to Sanuk, terms FOB destination, ny30, invoice dated May 8. The cost of the merchandise was $700.
May 10 BMX paid transportation costs of $50 for delivery of merchandise sold to Sanuk on May 8.
May 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.
May 18 BMX received payment from Sanuk for purchase of May 8.
May 21 BMX sold $2,400 of merchandise on account to Sanuk, terms FOB shipping point, 2/10, n/EOM. BMX prepaid transportation costs of $100, which were added to the invoice. The cost of the merchandise was $1,440.
May 31 BMX received payment from Sanuk for purchase of May 21, less discount (2% 3 $2,400).