Based on the information below, journalize the entries for the seller and the buyer. Both use a perpetual inventory system.
(a)Seller sold merchandise on account to the buyer, $4,750, terms 2/10, net 30, FOB shipping point. The cost of the merchandise is $2,850. The seller prepays the freight of $75.
(b)Buyer returns $700 of merchandise as defective. The cost of the merchandise is $420.
(c)Buyer pays within the discount period. 
Definitions:
Future Value
Future value is the value of an asset or amount of money at a specific future date, accounting for specified interest rates or returns over time.
Time Period
A specific duration marked by a start and end date or time, often used in financial and performance analysis.
Savings Accounts
Deposit accounts held at a financial institution that offer a modest interest rate.
Deposit
A sum of money placed into an account in a bank or similar financial institution.
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