Sunland Corporation uses the perpetual inventory system and began business on April $1.$ During the month Sunland made inventory purchases of $$83,700$ on terms of $\frac{3}{10},\frac{n}{30}.$ Sunland returned $$4,000$ worth of goods during the month. Sunland made all payments in time to take advantage of the offered cash discounts during the month. Sunland sold inventory on account with a value of $$71,700$ and a markup of $30\%$ on the cost. These were the only inventory transactions during the month. Leo uses the gross method in accounting for cash discounts. Prepare the journal entries related to:

$($a$)$

Prepare the journal entry related to the purchase of goods. $($List debit entry before credit entry. Credit account titles are automatically indented when the amount is entered. Do not indent manually.$)$

Account Titles and Explanation

Debit

Credit

Inventory