On March 2, Horst Company sold $891,800 of merchandise to Bernadina Company, terms 2/10, n/30. The cost of the merchandise sold was $501,700.
(b) On March 6, Bernadina Company returned $111,200 of the merchandise purchased on March 2. The cost of the merchandise returned was $67,630.
(c) On March 12, Horst Company received the balance due from Bernadina Company.
5-13

(a) On March 2, Kimbrel Company purchased $908,200 of merchandise from Pineda Company, terms 3/10, n/30.
(b) On March 6, Kimbrel Company returned $103,900 of the merchandise purchased on March 2.
(c) On March 12, Kimbrel Company paid the balance due to Pineda Company.

Account Receivables 891,800 debit

 Sales Revenues 891,800 credit

COGS 501,700 debit

  Merchandise Inventory 501,700 credit

Sales Returns  111,200 debit

   Account Receivables  111,200 credit

Merchandise Inventory 67,630 debit

                   COGS                67,630 credit

Cash               764,388 debit

Sales discounts 15,612 debit

         Accounts Receivables  780,600 credit

Inventory   908,200 debit

     Account payable   908,200 credit

Accounts Payable  103,900 debit

       Inventory               103,900

Accounts Payable   804,300 debit

         Inventory                 24,129 credit

         Cash                       780,171 credit

Explanation:

We have to record making debit = credit

when we sale the amount due form the customer is receivable

when we purchase the amount is payable.

1.- Balance of Bernandina:

891,800 - 111,200 = 780,600

discount of 2%:

780,600 x 0.02 = 15,612

proceeds from Bernandina:

780,600 - 15,612 = 764,388‬

2.- Purchase to Pineda's Balance:

908,200  - 103,900 = 804,300

we apply the discount

804,300 x 3% discount = 24,129

then, we calculate the amount due

804,300  -  24,129 =  780,171‬

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the definition of a small business is an independently owned and operated company that is limited in size and in revenue depending on the industry. a local bakery that employs 10 people is an example of a small business. a manufacturing facility that employees less than 500 people is an example of a small business.