Prepare journal entries to record each of the following sales transactions of a merchandising company. The company uses a perpetual inventory system and the gross method. April 1 Sold merchandise for \( \$ 7,200 \), with credit terms \( n / 30 \); invoice dated April 1. The cost of the merchandise is \( \$ 4,320 \). April 4 The customer in the April 1 sale returned \( \$ 800 \) of merchandise for full credit. The merchandise, which had cost \( \$ 480 \), is returned to inventory, April 8 Sold merchandise for \( \$ 3,100 \), with credit terms of \( 1 / 10, \mathrm{n} / 30 \); invoice dated April 8 . Cost of the merchandise is \( \$ 2,170 \). April il Received payment for the amount due from the April 1 sale less the return on April 4.

On April 1, when the merchandise was sold, the journal entries would be: **April 1:** Debit: Accounts Receivable \( \$ 7,200 \) Credit: Sales Revenue \( \$ 7,200 \) (Due for goods sold on credit) Debit: Cost of Goods Sold \( \$ 4,320 \) Credit: Inventory \( \$ 4,320 \) (To record the cost of merchandise sold) --- On April 4, when the return occurred: **April 4:** Debit: Sales Returns and Allowances \( \$ 800 \) Credit: Accounts Receivable \( \$ 800 \) (To record the return of merchandise) Debit: Inventory \( \$ 480 \) Credit: Cost of Goods Sold \( \$ 480 \) (To reinstate the cost of returned merchandise) --- On April 8, when new merchandise was sold: **April 8:** Debit: Accounts Receivable \( \$ 3,100 \) Credit: Sales Revenue \( \$ 3,100 \) (Due for new goods sold on credit) Debit: Cost of Goods Sold \( \$ 2,170 \) Credit: Inventory \( \$ 2,170 \) (To record the cost of new merchandise sold) --- Finally, on April 11, when payment is received: **April 11:** Debit: Cash \( \$ 6,400 \) Debit: Sales Discounts \( \$ 72 \) Credit: Accounts Receivable \( \$ 6,472 \) (To record cash received from the customer, considering the return and terms of discount) The calculation for cash received is \( \$ 7,200 - \$ 800 = \$ 6,400 \) and applying a discount of \( 1\% \) on the new sale amount of \( \$ 3,100 \) gives \( \$ 72 \).