On February 6, Markowitz Company sold $105,000 of merchandise to the Lyman Company, terms 2/10, net /30. The cost of the merchandise sold was $70,000. On February 8, the Lyman Company returned $14,000 of the merchandise purchased on February 6. The cost of the merchandise returned was $7,000. On February 16 Markowitz Company received the balance due from the Lyman Company.Prepare the journal entries to record the above transactions on Markowitz Company’s books using a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually.) DateAccount Titles and ExplanationDebitCreditFeb. 6(To record credit sale)Cost of Goods Sold70,00070,000(To record cost of good sold)Feb. 8Accounts Receivable(To record goods returned)(To record cost of good returned)Feb. 16Accounts Receivable
