Journal Entries for Merchandise Transactions on Seller's and Buyer's Books- Perpetual System The following transactions occurred between the Decker Company and Mann Stores, Inc., during March: Mar. 8 Decker sold $16,200 worth of merchandise ($12,100 cost) to Mann Stores with terms of 2/10, n/30. 10 Mann Stores paid freight charges on the shipment from Decker Company, $230. 12 Mann Stores returned $1,200 of the merchandise ($830 cost) shipped on March 8. 17 Decker received full payment for the net amount due from the March 8 sale. 20 Mann Stores returned goods that had been billed originally at $900 ($710 cost). Decker issued a check for $882. Required Prepare the necessary journal entries for (a) the books of Decker Company and (b) the books of Mann Stores, Inc. Assume that both companies use the perpetual inventory system. Sellers journal entries Buyer's journal entries Debit Credit 16200 $ 16200 12100 . 12100 DECKER COMPANY GENERAL JOURNAL Date Description Mar. 8 Accounts Receivable $ Sales Revenue Sold goods to Mann Stores terms 2/10, n/30. 8 Cost of Goods Sold Inventory Cost of goods sold to Mann Stores. 12 Sales Returns and Allowances Accounts Receivable Issued credit memo to Mann Stores for returned goods. 12 Inventory Cost of Goods Sold Cost of goods returned by Mann Stores. 17 Cash > 1,200 1,200 - 830 . 830 Sales Discounts - Accounts Receivable Received payment in full from Mann Stores. 20 Sales Returns and Allowances Sales Discounts Cash Paid Mann Stores for returned goods. Inventory Cost of Goods Sold Cost of goods returned by Mann Stores. MANN STORES GENERAL JOURNAL Description Date Debit Credit Mar. 8 $ $ Purchase goods from Decker Company terms 2/10, n/30. 10 A Paid freight charges on Decker shipment. 12 Received credit memo for goods returned to Decker Company. 17 Cash Paid Decker Company in full. 20 Received check for goods returned to Decker Company