Recording Sales Transactions

Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:

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 $$3,400,$ and the cost of the merchandise sold was $$2,450.$

On April $1,$ Mathis paid freight charges of $$100$ cash to have the goods delivered to its warehouse.

On April $8,$ Mathis returned $$1,000$ of the merchandise, which had originally cost Reece $$700.$

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 $1$

Accounts Receivable

Sales Revenue

$($Recorded sale on account$)$

April $1$

Cost of Goods Sold

Inventory

$($Recorded cost of merchandise sold$)$

April $8$

Sales Revenue

Accounts Receivable

$($Recorded return of merchandise$)$

April $8$

Inventory

Cost of Goods Sold

$($Recorded cost of merchandise returned$)$

April $10$

Cash

Accounts Receivable

$($Received customer payment within discount period$)$