Prepare the journal entries to record the following sales transactions in Culver Corp.'s books. Culver uses a perpetual inventory system. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Jan. 2 Culver sold $50,000 of goods to Xtra Inc., terms n/45, FOB destination. The cost of the goods sold was $28,000. Culver expected a return rate of 15%. 5 6 The appropriate company paid freight costs of $1,000. Xtra returned $6,200 of the merchandise purchased from Culver on January 2, because it was not needed. The cost of the merchandise returned was $3,472, and it was restored to inventory. 11 Culver received the balance due from Xtra. Date Account Titles and Explanation Debit Jan. 2 Accounts Receivable Refund Liability Sales (To record credit sale) 2 Cost of Goods Sold Estimated Inventory Returns Inventory (To record cost of goods sold) 5 Freight Out Cash 6 Refund Liability Accounts Receivable 50000 23800 4200 1000 6200 Credit 7500 42500 28000 1000 6200 6 Refund Liability Accounts Receivable (To record return of goods) 6 Inventory 11 Estimated Inventory Returns (To record cost of goods returned) Cash Accounts Receivable 6200 3472 43800 6200 3472 43800