On June 27th, Pen Image Inc. sold Marden Company 10 dozen (120) ball point pens with the Marden Company logo printed on each pen. The pens cost $27 per dozen for a total of $270. Marden was granted credits terms of 3/15, net 45. On June 30th, Marden returns 12 pens that were damaged in transit. On July 2nd, Marden calls Pen Image and requests a price reduction of $25 since the logos were not centered. Pen Image agreed to the reduction. On July 12, Marden pays half of the amount owed and pays the balance on August 11.
1. Record the journal entry for the transaction that took place on June 27.
2. Record the journal entry for the transaction that took place on June 30.
3. Record the journal entry for the transaction that took place on July 2.
4. Record the journal entry for the transaction that took place on July 12.
5. Record the journal entry for the transaction that took place on August 11.