Record sale of merchandise inventory: perpetual inventory system. (LO 1, 2)

Brenda Bailey's Textiles Inc. uses a perpetual inventory system. Enter each of the following transactions into the accounting equation.

1. On February 12, Brenda Bailey's sold \(\$ 500,000\) of merchandise on account with terms \(2 / 10, n / 30\). The cost of the merchandise sold was \(\$ 230,000\).

2. On February 16, the customer returned \(\$ 100,000\) of the merchandise purchased on February 12 because it was the wrong style. The cost of the merchandise returned was \(\$ 46,000\).

3. On February 20, the customer paid the balance due Brenda Bailey's.