Brief Exercise 5-4

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Prepare the journal entries to record the following transactions on McLeena Company's books using a perpetual inventory system.(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

(a)On March 2, Borst Company sold $800,000 of merchandise to McLeena Company, terms2/10, n/30. The cost of the merchandise sold was $540,000.(b)On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000.(c)On March 12, Borst Company received the balance due from McLeena Company.