Prepare journal entries to record the following sales transactions in Arturo Company’s books. Arturo uses a perpetual inventory system and the contract-based approach to revenue recognition. Arturo has a stated policy that all sales are final, no returns or exchanges.

June 16 Arturo sold $15,000 of merchandise to Guiying Company, terms 2/10, n/30, FOB destination.

The cost of the merchandise sold was $7,950.

17 The correct company paid freight costs of $265.

26 Arturo received the balance due from Guiying.