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Question - Prepare the journal entries to record the following transactions on Churchill Company's books using a perpetual inventory system.
(a) On March 2, Monroe Company sold $901,480 of merchandise to Churchill Company, terms 2/10, n/30. The cost of the merchandise sold was $615,120.
(b) On March 6, Churchill Company returned $110,730 of the merchandise purchased on March 2 because it was defective. The cost of the returned merchandise was $92,400.
(c) On March 12, Monroe Company received the balance due from Churchill Company.
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