Prepare the journal entries to record the following transactions on Horst Company’s books using a perpetual inventory system.

(a) On March 2, Horst Company sold $800,000 of merchandise to Bernadina Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000.

(b) On March 6, Bernadina Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000.

(c) On March 12, Horst Company received the balance due from Bernadina Company.

AppendixLO1