Reference no: EM133198024

Cell Phone Store and Cell Phone Warehouse incurred the following transactions in January 2018:

• January 05: Cell Phone Warehouse sold $15,000cell phones to Cell Phone Store. The sale had credit terms 2/10, n/30, FOB shipping.
• January 09: Cell Phone Store returned $2,000cell phones that it purchased on January 05. Cell Phone Store received a credit memo for this.
• January 13: Cell Phone Store paid $10,000 of the January 05 invoice amount that it owed to Cell Phone Warehouse.
• January31: Cell Phone Store paid the remaining balance that it owed to Cell Phone Warehouse.

Required:

1. Record these transactions on the accounting records of Cell Phone Store. Explanations are not required when recording the journal entries.
2. Then, record these transactions on the accounting records of Cell Phone Warehouse. Explanations are not required when recording the journal entries. Both businesses used the periodic inventory system. Discounts were permitted on particular payments.