Journal Entries for Sale, Return, and Remittance-Perpetual System On October 14, the Henry Company sold merchandise with an invoice price of $1,300 ($750 cost), with terms of 1/10, n/30, to t Company. On October 18, $300 of the merchandise ($175 cost) was returned because it was the wrong size. On October 24, the Company received a check for the amount due from the Baxter Company. Required Prepare the journal entries for the Henry Company using the perpetual inventory system. General Journal Date Description Debit Credit Oct. 14 Accounts Receivable 1,300 0 Y Sales Revenue 1,300 Sold merchandise to Baxter Company terms 1/10, n/30. 14 Cost of Goods Sold 750 Inventory 750 v Cost of merchandise sold to Baxter Company. 18 Sales Returns and Allowances 300 * Accounts Receivable 300 V Merchandise returned by Baxter Company. 18 Inventory 175 * 0 V Cost of Goods Sold 175 v Cost of merchandise returned by Baxter Company. 24 Cash 1,100 * 0 V Sales Discounts 10 * Accounts Receivable 1,000 Remittance received from Baxter Company