Wildhorse Central had the following sales transactions in December.
Dec. 4 Sold $4,900 of merchandise on account to Sandhill's Motors, terms 4/15, net 30. Cost $2,450.
7 Sandhill returned $1,400 of merchandise to Wildhorse Central because he changed his mind and wanted to order a different type of engine. Cost $700.
16 Sandhill paid the balance owing to Wildhorse Central.
(a)
Prepare the journal entries to record the sales transactions on the books of Wildhorse Central using a perpetual inventory system and the earnings approach for revenue recognition. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. List all debit entries before credit entries.)
Date Account Titles and Explanation Debit Credit