Prepare journal entries to record each of the following transactions of a merchandising company. Show any supporting calculations. Assume a perpetual inventory system.
Apr. 1 Sold merchandise for $2,000, granting the customer terms of 2/10, EOM. The cost of the merchandise was $1,400.
4 The customer in the April 1 sale returned merchandise and received credit for $500. The merchandise, which had cost $350, was returned to inventory.
11 Received payment for the amount due resulting from the April 1 sale, less the return and applicable discount, on April 4