On Dec. 19, 2011, the Seller Corp. sold $12,000 of merchandise inventory on account to the Buyer Corp. On Dec. 22, 2011, Buyer called Seller to report that a portion of the goods had been damaged during shipment. Buyer asked for and received a $300 discount from Seller for these damaged goods. These damaged goods had been sold to Buyer for $2,200 and had cost Seller $1,700. Both Seller and Buyer maintain a periodic inventory.
Required:
(a) Make the necessary Dec. 22, 2011 entry for Buyer; and
(b) Make the necessary Dec. 22, 2011 entry for Seller