Prepare the journal entries to record the following transactions on Graff Company’s books using a perpetual inventory system.
(a) On March 2, Graff Company sold $800,000 of merchandise to Rodriguez Company, terms 2/10, n/30. The cost of the merchandise sold was $540,000.
(b) On March 6, Rodriguez Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000.
(c) On March 12, Graff Company received the balance due from Rodriguez Company.