On December 3, Sunland sold HK$650,000 of merchandise on account to Culver Ltd., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was HK$353,600.
On December 8, Culver was granted an allowance of HK$29,500 for merchandise purchased on December 3.
On December 13, Sunland received the balance due from Culver.
a) Prepare the journal entries to record these transactions on the books of Sunland, using a perpetual inventory system.
b) Assume that Sunland received the balance due from Culver on January 2 of the following year instead of December 13. Prepare the journal entry to record the receipt of payment on January 2.