Brief Exercise 5-04 a-c (Part Level Submission) Prepare the journal entries to record the following transactions on Ivanhoe Company's books using a perpetual inventory system. (a) Your answer is correct. On March 2, Ivanhoe Company sold $863,000 of merchandise on account to Sarasota Company, terms 2/10, n/30. The cost of the merchandise sold was $577,000. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Accounts Receivable 863,000 Sales Revenue 863,000 (To record credit sale) Cost of Goods Sold 577,000 Inventory 577,000 (To record cost of merchandise sold) (b) Your answer is correct. On March 6, Sarasota Company returned $86,300 of the merchandise purchased on March 2. The cost of the returned merchandise was $56,500. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit Sales Returns and Allowances 86,300 Accounts Receivable 86,300 (To record merchandise returned) Inventory 56,500 Cost of Goods Sold 56,500 (To record cost of merchandise returned) (c) Your answer is partially correct. Try again. On March 12, Ivanhoe Company received the balance due from Sarasota Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Account Titles and Explanation Debit Credit X Cash 776,700 Sales Discounts 23,301 x Accounts Receivable 800,001