ints e's Snowmobiles, Inc. uses the perpetual inventory system and had the following sales transactions during July 2: Sold Merchandise to Snow Sporting Store under credit terms 1/15, n/60 for $3,200. The items sold had a cost of $1,800 4: Snow Sporting Store returned merchandise with a selling price of $400 and a cost of $175. 3: Snow Sporting Store paid for the merchandise sold on July 2, taking an appropriate discount earned. ired: Prepare the journal entries that Steve's Snowmobiles, Inc. must make to record the above transactions. Skip a line bet journal entry and omit explanations. For each journal entry, please use the following format: : Accounts Payable $X,XXX t: Cash $X,XXX