Perpetual inventory system

Principles of Accounting 1 Chapter 5 Merchandise Transactions Hinds Company sold merchandise to Peter Company on account for $146,000 with cream terms of 2/10, n/30. The cost of the merchandise sold was $86,140. During the discount period, Peter Company returned merchandise worth $6.000 and paid in full (less the discount). The merchandise returned had a cost of $3.450 to Hinds. Both companies use perpetual inventory system, Prepare the journal entries that Hinds Company made to record: (4) the sale of merchandise. (5) the return of merchandise. (6) the collection on account. Account Title / Debit Credit Page 2 2