Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000. During the first week in January 2019, the company made only one purchase and one sale. These

Panabee sells computer peripherals. At December 31, 2018, Panabee’s inventory amounted to $520,000. During the first week in January 2019, the company made only one purchase and one sale. These transactions were as follows: Jan. 2 Purchased 30 modems and 70 printers from Sharp. The total cost of these machines was $31,000, terms 5/10, n/60. Jan. 6 Sold 30 different types of products on account to Pace Corporation. The total sales price was $16,000, terms 8/10, n/90. The total cost of these 30 units to CPI was $7,800 (net of the purchase discount). CPI has a full-time accountant and a computer-based accounting system. It records sales at the gross sales price and purchases at net cost and maintains subsidiary ledgers for accounts receivable, inventory, and accounts payable. Prepare journal entries to record the two transactions, assuming that CPI uses a periodic inventory system.

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