6.3

Recording Sales Transactions Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, r/30. The selling price of the merchand se was $3,600, and the cost of the merchandise sold was $2,450. b. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its warehouse. c. On April 8, Mathis retumed $1,000 of the merchandise, which had originally cost Reece $700. d. On April 10, Mathis paid Reece the balance due. Prepare the journal entries to record these transactions on Reece's books. Assume that Rcece uses the net method to record sales on account. If an amount box does not require an entry, leave it blank