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Problem - The following transactions are for Wildhorse Company.
1. On December 3, Wildhorse Company sold $523,600 of merchandise to Ayayai Co., on account, terms 3/10, n/30. The cost of the merchandise sold was $363,200.
2. On December 8, Ayayai Co. was granted an allowance of $34,300 for merchandise purchased on December 3.
3. On December 13, Wildhorse Company received the balance due from Ayayai Co.
Required - Prepare the journal entries to record these transactions on the books of Wildhorse Company using a perpetual inventory system.
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