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Question: 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, 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.
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