Andy Company and Bobbie Company have the following transactions
during November 2007.

November

5 Bobbie Company sold $50,000 worth of goods to Andy
Company on terms of 2/15, n/30,FOB shipping point. Andy
received a 10% quantity discount and was liable for only the
net amount after the discount. Bobbie prepaid freight
charges of $2,000 and included this amount in the invoice
total. These goods cost Bobbie $21,000.

13 Andy returned $6,000 of the goods purchased on November
5. Bobbie issued a credit memo for this amount and
returned the goods to inventory (Bobbie’s cost, $2,500).

15 Andy paid $20,000 of the invoice amount owed to Bobbie
for the November 5 purchase, less the discount. This
payment included none of the freight charge.

19 Andy paid the remaining amount owed to Bobbie for the
November 5 purchase.

Required:
a Journalize these transactions, first on the books of Andy Company
and second on the books of Bobbie Company by assuming perpetual
inventory system for both parties. (Narratives are required.)
(13 marks)

b Repeat (a) by assuming the periodic inventory system for both
parties. (10 marks)