On October 5, Sunland Company buys merchandise on account from Splish Brothers Company. The selling price of the goods is $5,940, and the cost to Splish Brothers Company is $3,520. On October 8, Sunland returns defective goods with a selling price of $950 and a scrap value of $340.

Record the transactions on the books of Splish Brothers Company, assuming a perpetual approach.

On October 5, Sunland Company buys merchandise on account from Splish Brothers Company. The selling price of the goods is $5,940, and the cost to Splish Brothers Company is $3,520. On October 8 , Sunland returns defective goods with a selling price of $950 and a scrap value of $340. Record the transactions on the books of Splish Brothers 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.)