Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $25,100 with terms 1/10, n/30. The cost of the goods sold was $15,060. Sale Accounts Receivable 25,100 Sales 25,100 X Cost Cost of Goods Sold 15,060 Inventory 15,060 Feedback Check My Work (a) When the perpetual inventory system is used, two entries are recorded each time a sale is made. In the first entry, accounts receivable and the sale are recorded, less the discount. A second entry records the cost of the merchandise sold and the reduction of inventory on hand. Learning Objective 2. b. Received payment less the discount. Cash 24,598 x Accounts Receivable 24,598 X b. Received payment less the discount. Cash 24,598 X Accounts Receivable 24,598 x Feedback Check My Work (b) The exercise assumes the invoice will be paid within the discount period, so the seller records the sale at the discounted amount. Learning Objective 2. c. Refunded $380 to customer for defective merchandise that was not returned. Customer Refunds Payable 200 Cash 200