Question $9$ of $21$

Prepare the journal entries to record the following transactions on Larkspur, Inc.$\text{'}$s books using a perpetual inventory system.

$($a$)$

On March $2,$ Larkspur, Inc. sold $$872,000$ of merchandise on account to Novak Company, terms $3/10,$ n$/30.$ The cost of the merchandise sold was $$541,000.($Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select $"$No Entry" for the account titles and enter $0$ for the amounts.$)$

Account Titles and Explanation

Debit

Credit

$($To record credit sale$)$

$($To record cost of merchandise sold$)$