Prepare the journal entries to record the following transactions on Novy Company’s books using a perpetual inventory system.
(a) On March 2, Novy Company sold $900,000 of merchandise to Opps Company, terms 2/10, n/30. The cost of the merchandise sold was $590,000.
(b) On March 6, Opps Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000.
(c) On March 12, Novy Company received the balance due from Opps Company.