Assignment
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 $ 180,000 from Spoon Company. Trade discounts of 20 % and 10 % were allowed. Terms were 2/10, n/30, FOB destination, freight prepaid. Cost of merchandise is 115,000.
16 The seller paid the freight charges, $ 2,400.
17 The seller granted an allowance of $ 4,512 requested by the buyer.
20.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.