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<p>Prepare the journal entries to record the following transactions on Churchill Company's books using a perpetual inventory system. <br /><br />A]On March 2, Monroe Company sold $891,720 of merchandise to Churchill Company, terms 2/10, n/30. The cost of the merchandise sold was $628,410.<br /><br />B]On March 6, Churchill Company returned $125,600 of the merchandise purchased on March 2 because it was defective. The cost of the returned merchandise was $90,710 .<br /><br />C]On March 12, Monroe Company received the balance due from Churchill Company.</p>.
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