Record sales transactions using a perpetual inventory system.

(LO 1), AP

Use a tabular summary to record the following transactions for Borst Company using a perpetual inventory system.

(a) On March 2, Borst Company sold $800,000 of merchandise to McLeena Company on account. The cost of the merchandise sold was $540,000.

(b) On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000.

(c) On March 12, Borst Company received the balance due from McLeena Company.