Recording sales, returns, and discounts taken LO P2 Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method.
Apr. 1 Sold merchandise for $6,600, with credit terms n/30; invoice dated April 1. The cost of the merchandise is $3,960.
Apr. 4 The customer in the April 1 sale returned $740 of merchandise for full credit. The merchandise, which had cost $444, is returned to inventory.
Apr. 8 Sold merchandise for $2,800, with credit terms of 1/10, n/30; invoice dated April 8. Cost of the merchandise is $1,960.
Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.
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