Recording Sales Transactions

Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April: a. On April 1, Mathis purchased merchandise on account from Reece with credit terms of 2/10, n/30. The selling price of the merchandise was $3,100, and the cost of the merchandise sold was $2,450. b. On April 1, Mathis paid freight charges of $100 cash to have the goods delivered to its warehouse. c. On April 8, Mathis returned $1,000 of the merchandise, which had originally cost Reece $700. d. On April 10, Mathis paid Reece the balance due. Required: Prepare the journal entries to record these transactions on Reece's books. Assume that Reece uses the net method to record sales on account. If an amount box does not require an entry, leave it blank. April 1 (Recorded sale on account) April 1 (Recorded cost of merchandise sold) April 8 (Recorded return of merchandise) April 8 (Recorded cost of merchandise returned) I I April 10 88