On October $5,$ Sage Hill Company buys merchandise on account from Oriole Company. The selling price of the goods is $$5,540,$ and the

cost to Oriole Company is $$3,500.$ On October $8,$ Sage Hill returns defective goods with a selling price of $$900$ and a scrap value of

$$340.$

Record the transactions of Sage Hill Company, assuming a perpetual approach. $($If no entry is required, select $"$No Entry" for the account

titles and enter $0$ for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record

journal entries in the order presented in the problem. List all debit entries before credit entries.$)$

Date

Account Titles and Explanation

Debit

Credit

Sales Returns and Allowances

Accounts Receivable

Sales Returns and Allowances

Inventory