On April 6, Softwinds Fans Corporation sold inventory costing $3,000 to Tail Company at a selling price of $5,820. On April 8, Tail returned inventory with a selling price of

$760 (cost of $400) purchased on April 6 because the inventory did not match what was ordered. Softwinds uses a perpetual inventory system.

Required: (1) Assuming that the inventory was sold for cash, prepare T-account entries for Softwinds to record the preceding transactions.

(2) Assuming instead that the inventory was sold on credit, prepare T-account entries to record the preceding transactions. TYK-1