Ivanhoe Company buys merchandise on account from Sarasota Company. The selling price of the goods is $$1,430,$ and the cost of the goods is $$1,070.$ Both companies use perpetual inventory systems.

Journalize the transaction on the books of both companies. $($List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

Ivanhoe Company.

$($To record credit purchase of inventory$)$

Sarasota Company.

$($To record credit sale$)$

$($To record cost of merchandise sold$)$