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Question - Prepare the journal entries to record the following transactions on Pharoah Company's books using a perpetual inventory system.
(a) On March 2, Pharoah Company sold $934,300 of merchandise to Shamrock Company on account, terms 2/10, n/30. The cost of the merchandise sold was $508,200.
(b) On March 6, Shamrock Company returned $107,900 of the merchandise purchased on March 2. The cost of the merchandise returned was $60,600.
(c) On March 12, Pharoah Company received the balance due from Shamrock Company.
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