1.

Consider the following independent scenarios: Karns Company purchased merchandise on account from Balley Oilers for $174.000 with terms of 2/10, 1/30 During the discount period Karns returned some merchandise and paid $156.800 payment in full arms uses a perpetual Inventory system Prepare the journal entries that arm Comode to record the purchase of merchandise the return of merchandise the payment on account 31 Cred contenently inderted when the amount hentered Denetinden No. Account Titles and Explanation Debit (1) Credit (2) 3) Hinds Company sold merchandise to Peter Company on count for $148.000 with great terms of 1/10.30. The cost of the merchandise sold was $84.140. During the discount period, Peter Componen 156.000 al merchandise and paid its accountiful minus the discount) by remitting $137.200 in cash Both companies a perpetua inventory system. Prepare the journal entries that Hinds Company made to record the sale of merchandise the return of merchandise the collection on account. Orditacounts are automatically indeed when the amounts Desinde No. Account Titles and Explanation De Credit (To record credit sale) To record cost of goods To record credit granted for returned goods (Te record cost of good returned) a)