Question: The following transactions are for Alonzo Company.
1. On December 3, Alonzo Company sold $500,000 of merchandise to Arte Co., terms 1/10, n/30. The cost of the merchandise sold was $330,000.
2. On December 8, Arte Co. was granted an allowance of $25,000 for merchandise purchased on December 3.
3. On December 13, Alonzo Company received the balance due from Arte Co.
Instructions: (a) Prepare the journal entries to record these transactions on the books of Alonzo Company. Alonzo uses a perpetual inventory system.
(b) Assume that Alonzo Company received the balance due from Arte Co. on January 2 of the following year instead of December
1. Prepare the journal entry to record the receipt of payment on January 2.