Austin's Pub Supply uses the periodic inventory system and the gross method of accounting for sales. The company had the following sales transactions during August:August 2Sold merchandise to Jo's Pub and Grub on credit for $3,750, terms 2/15, n/60. The items sold had a cost of $1,200. August 4 Jo's Pub and Grub returned merchandise that had a selling price of $300. The cost of the merchandise returned was $110.August 13Jo's Pub and Grub paid for the merchandise sold on August 2, taking any appropriate discount earned.Prepare the journal entries that Austin's Pub Supply must make to record these transactions.
What will be an ideal response?
| Aug. 2 | Accounts receivable | 3,750 | ? |
| ? | Sales | ? | 3,750 |
| Aug. 4 | Sales returns and allowances | 300 | ? |
| ? | Accounts receivable | ? | 300 |
| Aug. 13 | Cash | 3,381 | ? |
| ? | Sales discounts | 69 | ? |
| ? | Accounts receivable | ? | 3,450 |
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