Prepare the Journal Entries for the Transactions Listed Below Under

Essay

Prepare the journal entries for the transactions listed below under each of the two inventory systems.
A. Purchased merchandise for cash, $1,000.
B. Sold merchandise for $600 cash that had cost $480 (cost is 80% of the sales price.
C. Accepted a sales return from a customer: sales price $30. A cash refund was given to the customer. The goods were returned to regular inventory.
D. Returned goods to the vendor because they did not meet our specification; $50 cash refund was received.