Prepare the journal entries to record the following transactions on Ramirez Company’s books using a perpetual inventory system.
(a) On March 2 Ramirez Company sold $800,000 of merchandise to Ikerd Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000.
(b) On March 6 Ikerd Company returned $110,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $75,000.
(c) On March 12 Ramirez Company received the balance due from Ikerd Company.