a. Candle Carpet Company engaged in the following transactions in August 2010:
Aug. 2 Sold merchandise on account for USD 300,000; terms 2/10, n/30, FOB shipping point, freight collect.
18 Received payment for the sale of August 2.
20 A total of USD 10,000 of the merchandise sold on August 2 was returned, and a full refund was made because it was the wrong merchandise.
28 An allowance of USD 16,000 was granted on the sale of August 2 because some merchandise was found to be damaged; USD 16,000 cash was returned to the customer.
b. Lee Furniture Company engaged in the following transactions in August 2010:
Aug. 4 Purchased merchandise on account at a cost of USD 140,000; terms 2/10, n/30, FOB shipping point, freight collect.
6 Paid freight of USD 2,000 on the purchase of August 4.
10 Sold goods for USD 100,000; terms 2/10, n/30.
12 Returned USD 24,000 of the merchandise purchased on August 4.
14 Paid the amount due on the purchase of August 4.
Prepare journal entries for the transactions.