Current Attempt in Progress

Hinds Company sold merchandise to Peter Company on account for $$146,000$ with credit terms of $?/10,$ n$/30.$ The cost of the

merchandise sold was $$86,140.$ During the discount period, Peter Company returned $$6,000$ of merchandise and paid its account in

full $($minus the discount$)$ by remitting $$137,200$ in cash. Both companies use a perpetual inventory system.

Prepare the journal entries that Hinds Company made to record: $($Credit account titles are automatically indented when the amount is

entered. Do not indent manually. Record journal entries in the order presented in the problem.$)$

$(1)$ the sale of merchandise.

$(2)$ the return of merchandise.

$(3)$ the collection on account.

Transaction Account Titles and Explanation

Debit

Credit

$($To record credit sale.$)$

$($To record cost of good sold.$)$

$($To record returned goods.$)$