PREPARE JOURNAL ENTRIES FOR THE FOLLOWING TRASNACTIONS:

Metro Co. purchased merchandise on May 4 at a price of $60,000, subject to credit terms of 3/10, n/30. Metro uses the gross method for recording purchases and uses a perpetual inventory system. May 4 purchase of merchandise on account. On May 10, Metro returned $10,000 worth of the merchandise purchased above. Prepare the journal entry to record the transaction. Record the appropriate payment of the invoice on May 29. On June 1, Metro sold $10,000 of merchandise on account terms 2/15,n/45. Cost of the merchandise was $4,000.

Prepare the journal entry using the gross method for perpetual inventory.