Question

Accounting
Prepare the journal entries to record the following transactions:

Sales:

(a) On March 2, Benson Company sold $800,000 of merchandise to Edgebrook Company, terms 2/10, n/30 on account. The cost of the merchandise sold was $620,000.
(b) On March 6, Edgebrook Company returned $120,000 of the merchandise purchased on March 2 because it was defective. The cost of the returned merchandise was $90,000.
(c) On March 12, Benson Company received the balance due from Edgebrook Company.


Purchases:
(d) On May 1, purchased 1,000 units of merchandise at $30 per unit on account, 1/10, n/30.
(e) On May 2, returned 500 units at $30 per unit.
(f) Paid $50 cash in shipping.
(g) On May 10, paid for May 1 purchase.