Using the information in E6-12, prepare journal entries to record the transactions, assuming Bear’s Retail Store records discounts using the net method in a perpetual inventory system. Forfeited discounts are recorded as Other Revenue.

Data from E6-12:

The following transactions were selected from among those completed by Bear’s Retail Store:

Nov. 20    Sold two items of merchandise to Cheryl Jahn, who paid the $400 sales price in cash. The goods cost Bear’s $300.

25        Sold 20 items of merchandise to Vasko Athletics at a selling price of $4,000 (total); terms 3/10, n/30. The goods cost Bear’s $2,500.

28        Sold 10 identical items of merchandise to Nancy’s Gym at a selling price of $6,000 (total); terms 3/10, n/30. The goods cost Bear’s $4,000.

29     Nancy’s Gym returned one of the items purchased on the 28th. The item was in perfect condition and credit was given to the customer.

Dec. 6   Nancy’s Gym paid the account balance in full.

30         Vasko Athletics paid in full for the invoice of November 25.