Question - Based on the information below, journalize the entries during April 20XX for the Johnson Company and the Hills Company. Both use a perpetual inventory system.
April 4 - Johnson Company sells Hills Company on account merchandise costing $200 for $450, terms 2/10, net 30.
10 - Hills Company returns as defective $150 worth of the $450 merchandise received. The Johnson Company's cost is $85.
14 - Hills Company pays within the discount period.
Prepare an Income Statement through Gross Profit for the Johnson Company.