Journal Entries for Merchandise Transactions on Seller's and Buyer's Books-Perpetual System The following are selected transactions for Candello, Inc., during the month of June:

June	18	Sold and shipped on account to Dante Company, $5,000 ($4,000 at cost) of merchandise, with terms of 2/10, n/30.
	25	Dante Company returned merchandise billed at $500 on June 21 ($400 cost.)
	27	Received from Dante Company a check for full settlement of the June 21 transaction.

Required Prepare the necessary journal entries for (a) Candello, Inc., and (b) Dante Company. Both companies use the perpetual inventory system.

a. Choose one in description

CANDELLO, INC. GENERAL JOURNAL
Date		Description	Debit	Credit
June	18	AnswerAccounts payableCost of Goods SoldSales DiscountsCashAccounts ReceivableInventorySales Returns and AllowancesSales Revenue	Answer	Answer
		AnswerSales DiscountsCost of Goods SoldInventoryCashAccounts ReceivableSales RevenueAccounts payableSales Returns and Allowances	Answer	Answer
		Sold merchandise to Dante Company terms 2/10, n/30.
	18	AnswerSales RevenueCashSales DiscountsSales Returns and AllowancesCost of Goods SoldInventoryAccounts payableAccounts Receivable	Answer	Answer
		AnswerAccounts ReceivableInventorySales RevenueSales DiscountsCost of Goods SoldCashAccounts payableSales Returns and Allowances	Answer	Answer
		Cost of merchandise sold to Dante Company.
	25	AnswerCashSales Returns and AllowancesAccounts payableSales DiscountsSales RevenueAccounts ReceivableCost of Goods SoldInventory	Answer	Answer
		AnswerInventorySales RevenueAccounts payableCashSales Returns and AllowancesAccounts ReceivableCost of Goods SoldSales Discounts	Answer	Answer
		Merchandise returned by Dante Company.
	25	AnswerInventoryCost of Goods SoldAccounts ReceivableAccounts payableSales DiscountsSales RevenueSales Returns and AllowancesCash	Answer	Answer
		AnswerCost of Goods SoldCashSales DiscountsInventorySales RevenueSales Returns and AllowancesAccounts payableAccounts Receivable	Answer	Answer
		Cost of merchandise returned by Dante Company.
	27	AnswerSales DiscountsCost of Goods SoldAccounts ReceivableSales RevenueSales Returns and AllowancesAccounts payableInventoryCash	Answer	Answer
		Sales Discounts	Answer	Answer
		AnswerSales RevenueCashSales Returns and AllowancesAccounts payableAccounts ReceivableInventorySales DiscountsCost of Goods Sold	Answer	Answer
		Received amount due from Dante Company.

b.

DANTE COMPANY GENERAL JOURNAL
Date		Description	Debit	Credit
June	18	AnswerCost of Goods SoldAccounts ReceivableSales Returns and AllowancesInventorySales DiscountsAccounts payableCashSales Revenue	Answer	Answer
		AnswerSales Returns and AllowancesAccounts ReceivableAccounts payableCost of Goods SoldSales DiscountsSales RevenueInventoryCash	Answer	Answer
		Purchased merchandise from Candello, Inc.; terms 2/10, n/30.
	25	AnswerSales RevenueCost of Goods SoldAccounts ReceivableSales Returns and AllowancesAccounts payableCashInventorySales Discounts	Answer	Answer
		AnswerInventoryAccounts payableSales DiscountsSales RevenueCost of Goods SoldAccounts ReceivableSales Returns and AllowancesCash	Answer	Answer
		Returned merchandise to Candello, Inc.
	27	AnswerSales DiscountsCashInventorySales RevenueSales Returns and AllowancesAccounts ReceivableAccounts payableCost of Goods Sold	Answer	Answer
		AnswerCashAccounts payableSales Returns and AllowancesCost of Goods SoldSales RevenueSales DiscountsAccounts ReceivableInventory	Answer	Answer
		Cash	Answer	Answer
		Paid amount due to Candello, Inc.