Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual inventory system and the gross method May 1 Sold merchandise for $780, with credit terms n/60. The cost of the merchandise is $490. May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer's accounts receivable for $58 to compensate for the defects. June 4 The customer in the May 1 sale returned $120 of merchandise for full credit. The merchandise, which had cost $68, is returned to inventory. June 30 Received payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return. View transaction list Journal entry worksheet 1 2 3 4 5 6 Sold merchandise for $780, with credit terms n/60. Note: Enter debits before credits. Date May 01 General Journal Debit Credit