Using the information in E6-11, prepare journal entries to record the transactions, assuming Evergreen Company records discounts using the gross method in a perpetual inventory system.

Data from E6-11:

The following transactions were selected from the records of Evergreen Company: 

July 12   Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600.

15        Sold merchandise to Claudio’s Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500.

16     Sold merchandise to Otto’s Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900.

23    Received cash from Claudio’s Chair Company for the amount due from July 15.

31    Received cash from Otto’s Ottomans for the amount due from July 16.