On February 6, Markowitz Company sold $105,000 of merchandise to the Lyman Company, terms 2/10, net /30. The cost of the merchandise sold was $70,000. On February 8, the Lyman Company returned $14,000 of the merchandise purchased on February 6. The cost of the merchandise returned was $7,000. On February 16 Markowitz Company received the balance due from the Lyman Company.
Prepare the journal entries to record the above transactions on Markowitz Company’s books using a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.)
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Account Titles and Explanation
(To record credit sale)
Cost of Goods Sold
(To record cost of good sold)
(To record goods returned)
(To record cost of good returned)