Kate Company uses the perpetual inventory system. Record the journal entries for the following transactions:

a. On July 16, Kate sold $900 of merchandise with terms of 2/10, n/30. The cost of the merchandise was $540.

b. On July 19, the customer returned $150 of the merchandise from (a). The cost of the merchandise was $90.

c. On July 22, the customer paid the entire balance due to Kate.

Accounting for Sales Transactions Kate Company uses the perpetual inventory system. Record the journal entries for the following transactions: a. OnJuly 16, Kate sold $900 of merchandise with terms of 2/1 0, n/30. The cost of the merchandise was $540. b. OnJuly 19, the customer returned $150 of the merchandise from (a). The cost of the merchandise was $90. c. OnJuly 22, the customer paid the entire balance due to Kate. Generaljournal Description Debit a. Accounts receivable c v 0 x 0 v Sales revenue : v 0 v 0 x To record sale of merchandise. Cost of goods sold : o/ 0 x 0 4 Inventory 6 v 0 v 0 a: To record cost of merchandise sold. b. Sales returns 0 x 0 v Accounts receivable 3 v 0 v 0 x To record return of merchandise sold. I 0 x 0 v v 0 v 0 3' Inventory 0 0 Cost of goods sold To record cost of merchandise sold. c. Cash 0 x 0 v Sales discounts 6 I 0 x 0 Accounts receivable c v 0 v 0 x