Problem - Prepare the journal entries to record the following transactions on Derrick Company's books using a perpetual inventory system.
(a) On 2 March, Derrick Company sold $967,000 of merchandise to Rose Company, terms 2/10, n/30. The cost of the merchandise sold was $567,000.
(b) On 6 March, Rose Company returned $96,700 of the merchandise purchased on 2 March. The cost of the returned merchandise was $56,700.
(c) On 12 March, Derrick Company received the balance due from Rose Company.