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Consider the following INDEPENDENT scenarios:

Karns Company purchased merchandise on account from Bailey Office Suppliers for $174,000, with terms of 2/10,n/30. During the discount period, Karns returned some merchandise and paid $156,800 as payment in full. Karns uses a perpetual inventory system. Prepare the journal entries that Karns Company made to record: (1) the purchase of merchandise. (2) the return of merchandise. (3) the payment on account. (Credit occount titles are automatically indented when the amount is entered. Do not indent manually.) No. Account Titles and Explanation Debit Credit (1) (To record sale) (To record cost of good sold) (2) (To record credit granted for retumed goods) (To record cost of good returned) (3) Hinds Company sold merchandise to Peter Company on account for $146,000 with credit terms of ? /10,n/30. The cost of the merchandise sold was $86,140. During the discount period, Peter Company returned $6,000 of merchandise and paid its account in full (minus the discount) by remitting $137,200 in cash. Both companies use a perpetual inventory system. Prepare the journal entries that Hinds Company made to record: (1) the sale of merchandise, (2) the return of merchandise. (3) the collection on account. (Credit account titles are automatically indented when the amount is entered, Do not indent manually)

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