Using the information in E6-16, prepare journal entries to record the transactions, assuming Bear’s Retail Store uses a perpetual inventory system.
Info E6-16
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.