From the information in BE5.4, prepare the journal entries to record these transactions on McLeena Company’s books under a perpetual inventory system.
Data From BE 5.4
Prepare the journal entries to record the following transactions on Borst Company’s books using a perpetual inventory system.
a. On March 2, Borst Company sold $800,000 of merchandise to McLeena Company on account, terms 2/10, n/30. The cost of the merchandise sold was $540,000.
b. On March 6, McLeena Company returned $140,000 of the merchandise purchased on March 2. The cost of the merchandise returned was $94,000.
c. On March 12, Borst Company received the balance due from McLeena Company.
