Prepare the journal entries to record the following transactions on Kwang Company’s books using a perpetual inventory system.
(a) On March 2, Kwang Company sold $900,000 of merchandise to Sensat Company, terms 2/10, n/30. The cost of the merchandise sold was $620,000.
(b) On March 6, Sensat Company returned $90,000 of the merchandise purchased on March 2. The cost of the returned merchandise was $62,000.
(c) On March 12, Kwang Company received the balance due from Sensat Company.