BE5-4 From the information in BE5-3, prepare the journal entries to record these transactions
on Churchill Company’s books under a perpetual inventory system.
Data from BE5-3
(a) On March 2, Monroe Company sold $900,000 of merchandise to Churchill Company, terms
2/10, n/30.The cost of the merchandise sold was $620,000.
(b) On March 6, Churchill 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, Monroe Company received the balance due from Churchill Company.
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