Brief Exercise 5-4 Prepare the journal entries to record these transactions on Novak Company's books under a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) (a) on March 2, Benson Company sold 1896,000 of merchandise to Novak Company, terms 2/10, 1/30. The cost of the merchandise sold was 616,000. Account Titles and Explanation Credit (b) on March 6, Novak Company returned 134,400 of the merchandise purchased on March 2. The cost of the returned merchandise was 89,419. Account Titles and Explanation Debit Credit (e) On March 12, Benson Company received the balance due from Novak Company Account Titles and Explanation