PROBLEM #1: Prepare the journal entries to record the following transactions on Markowitz Companys books using a perpetual inventory system. On February 6, Markowitz Company sold $75,000 of merchandise to the Lyman Company, terms 2/10, net /30. The cost of the merchandise sold was $50,000. On February 8, the Lyman Company returned $10,000 of the merchandise purchased on February 6. The cost of the merchandise returned was $5,000. On February 16 Markowitz Company received the balance due from the Lyman Company.

PROBLEM #2: June 4 Black Company purchased $7,000 worth of merchandise, terms n/30 from Hayes Company. The cost of the merchandise was $4,900. Black returned $500 worth of goods to Hayes for full credit. The goods had a cost of $350 to Hayes. Black paid the account in full. Instructions Prepare the journal entries to record these transactions in (a) Blacks records and (b) Hayes records. Assume use of the perpetual inventory system for both companies.