Your answer is partially correct. Try again. On October 5, Wang Company buys merchandise on account from Davis Company. The selling price of the goods is $5,080, and the cost to Davis Company is $2,910. On October 8, Wang returns defective goods with a selling price of $710 and a fair value of $125. Record the transactions on the books of Wang Company. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit T Oct. 5 Cost of Goods Sold 5080 Inventory 5080 (To record goods purchased on account) Cost of Goods Sold Inventory (To record return of defective goods)