Cornerstone Exercise $6-21$

Recording Sales Transactions

Mathis Company and Reece Company use the perpetual inventory system. The following transactions occurred during the month of April:

a$.$ On April $1,$ Mathis purchased merchandise on account from Reece with credit terms of $\frac{2}{10},\frac{n}{30}.$ The selling price of the merchandise was $$3,100,$ and the cost of the merchandise sold was $$2,225.$

b$.$ On April $1,$ Mathis paid freight charges of $$250$ cash to have the goods delivered to its warehouse.

c$.$ On April $8,$ Mathis returned $$800$ of the merchandise which had originally cost Reece $$500.$

d$.$ On April $10,$ Mathis paid Reece the balance due.

Required:

Prepare the journal entries to record these transactior on Reece's books. Assume that Reece uses the net method to record sales on account. For a compound transaction, if an amount box does not require an entry, leave it blank.

April $1$

$($Recorded sale on account$)$

April $1$

$($Recorded cost of merchandise sold$)$

April $8$

$($Recorded return of merchandise$)$

April $8$