On October 5, Narveson Company buys merchandise on account from Rossi Company. The selling price of the goods is $5,000, and the cost to Rossi Company is

$3,000. On October 8, Narveson returns defective goods with a selling price of $640 and a scrap value of $240. Record the transactions of Narveson Company, assuming a perpetual approach.

AppendixLO1