Prepare journal entries to record the following sales transactions in Carla Vista Companys books. Carla Vista uses a perpetual inventory system.

Jan. 2 Carla Vista sold $18,000 of merchandise to Xiaoyan Company, terms n/30, FOB shipping point. The cost of the merchandise sold was $7,110.

4 The correct company paid freight costs of $195.

6 Xiaoyan returned $1,600 of the merchandise purchased on January 2 because it was not needed. The cost of the merchandise returned was $630, and it was restored to inventory.

Feb. 1 Carla Vista received the balance due from Xiaoyan.

Question 1 of 4 -72 Date Account Titles and Explanation Debit Credit (lorecord sales on account) (Ta record cost of goods sold.) (lorecord credit for poch returned) (To record cost of returned poods.) Collection on account