Question: Refer to QS 5-4 and prepare journal entries to record each of the merchandising transactions assuming that the periodic inventory system is used.
QS 5-4: Prepare journal entries to record each of the following sales transactions of a merchandising company. Show supporting calculations and assume a perpetual inventory system. Apr. 1 Sold merchandise for $2,000, granting the customer terms of 2y10, EOM; invoice dated April 1. The cost of the merchandise is $1,400. Apr. 4 The customer in the April 1 sale returned merchandise and received credit for $500. The merchandise, which had cost $350, is returned to inventory. Apr. 11 Received payment for the amount due from the April 1 sale less the return on April 4.