Journal Entries for Merchandise Transactions on Seller’s and Buyer’s Books-Perpetual System The following are selected transactions for Candello, Inc., during the month of June: June18Sold and shipped on account to Dante Company, $5,000 ($4,000 at cost) of merchandise, with terms of 2/10, n/30. 25Dante Company returned merchandise billed at $500 on June 21 ($400 cost.) 27Received from Dante Company a check for full settlement of the June 21 transaction. Required Prepare the necessary journal entries for (a) Candello, Inc., and (b) Dante Company. Both companies use the perpetual inventory system. a. Choose one in description June18AnswerAccounts payableCost of Goods SoldSales DiscountsCashAccounts ReceivableInventorySales Returns and AllowancesSales RevenueAnswerAnswer AnswerSales DiscountsCost of Goods SoldInventoryCashAccounts ReceivableSales RevenueAccounts payableSales Returns and AllowancesAnswerAnswer Sold merchandise to Dante Company terms 2/10, n/30. 18AnswerSales RevenueCashSales DiscountsSales Returns and AllowancesCost of Goods SoldInventoryAccounts payableAccounts ReceivableAnswerAnswer AnswerAccounts ReceivableInventorySales RevenueSales DiscountsCost of Goods SoldCashAccounts payableSales Returns and AllowancesAnswerAnswer Cost of merchandise sold to Dante Company. 25AnswerCashSales Returns and AllowancesAccounts payableSales DiscountsSales RevenueAccounts ReceivableCost of Goods SoldInventoryAnswerAnswer AnswerInventorySales RevenueAccounts payableCashSales Returns and AllowancesAccounts ReceivableCost of Goods SoldSales DiscountsAnswerAnswer Merchandise returned by Dante Company. 25AnswerInventoryCost of Goods SoldAccounts ReceivableAccounts payableSales DiscountsSales RevenueSales Returns and AllowancesCashAnswerAnswer AnswerCost of Goods SoldCashSales DiscountsInventorySales RevenueSales Returns and AllowancesAccounts payableAccounts ReceivableAnswerAnswer Cost of merchandise returned by Dante Company. 27AnswerSales DiscountsCost of Goods SoldAccounts ReceivableSales RevenueSales Returns and AllowancesAccounts payableInventoryCashAnswerAnswer Sales DiscountsAnswerAnswer AnswerSales RevenueCashSales Returns and AllowancesAccounts payableAccounts ReceivableInventorySales DiscountsCost of Goods SoldAnswerAnswer Received amount due from Dante Company. b. June18AnswerCost of Goods SoldAccounts ReceivableSales Returns and AllowancesInventorySales DiscountsAccounts payableCashSales RevenueAnswerAnswer AnswerSales Returns and AllowancesAccounts ReceivableAccounts payableCost of Goods SoldSales DiscountsSales RevenueInventoryCashAnswerAnswer Purchased merchandise from Candello, Inc.; terms 2/10, n/30. 25AnswerSales RevenueCost of Goods SoldAccounts ReceivableSales Returns and AllowancesAccounts payableCashInventorySales DiscountsAnswerAnswer AnswerInventoryAccounts payableSales DiscountsSales RevenueCost of Goods SoldAccounts ReceivableSales Returns and AllowancesCashAnswerAnswer Returned merchandise to Candello, Inc. 27AnswerSales DiscountsCashInventorySales RevenueSales Returns and AllowancesAccounts ReceivableAccounts payableCost of Goods SoldAnswerAnswer AnswerCashAccounts payableSales Returns and AllowancesCost of Goods SoldSales RevenueSales DiscountsAccounts ReceivableInventoryAnswerAnswer CashAnswerAnswer Paid amount due to Candello, Inc.