QS 5-13 (Algo) Recording sales, returns, and allowances; no discounts LO P2 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 $880, with credit terms n/60. The cost of the merchandise is $540. May 9 The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customen's accounts receivable for $68 to compensate for the defects. June 4 The customer in the May 1 sale returned $145 of eerchandise for full credit. The merchandise, which had cost $78, is returned to inventory. June 30 Recelved payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return