Discounts (Net Method) [LO 6-51] The following transactions were selected from the records of Evergreen Company: July 12 Sold merchandise to Wally Butler, who paid the $1,000 purchase with cash. The goods cost Evergreen Company $600. July 15 Sold merchandise to Claudio's Chair Company at a selling price of $5,000 on terms 3/10, n/30. The goods cost Evergreen Company $3,500. July 16 Sold merchandise to Otto's Ottomans at a selling price of $3,000 on terms 3/10, n/30. The goods cost Evergreen Company $1,900. July 23 Received cash from Claudio's Chair Company for the amount due from July 15. July 31 Received cash from Otto's Ottomans for the amount due from July 16. Required: Prepare journal entries to record the transactions, assuming Evergreen Company records discounts using the net method in a perpetual inventory system. Forfeited discounts are recorded as Other Revenue. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list View journal entry worksheet No Date General Journal ces 1 July 12 Cashi Sales Revenue . Debit Credit 1,000 1,000 2 July 12 Cost of Goods Sold Inventory 600 600 3 July 15 Accounts Receivable Sales Revenue 5,000 5,000 4 July 15 Cost of Goods Sold 3,500 Inventory 3,500 No Date 1 July 12 Cash Sales Revenue General Journal Debit 1,000 O Credit 1,000 2 July 12 Cost of Goods Sold Inventory 600 600 3 July 15 Accounts Receivable Sales Revenue 00 5,000 5,000 4 July 15 Cost of Goods Sold Inventory 3,500 3,500 5 July 16 Accounts Receivable. Sales Revenue 6 July 16 Cost of Goods Sold Inventory 00 00 3,000 3,000 1,900 1,900 7 July 231 Cash Sales Discounts Accounts Receivable B July 31 Cash Accounts Receivable 000 00 4,850 150 5,000 3,000 3,000