On March 12, Fret Company sold merchandise in the amount of…
On March 12, Fret Company sold merchandise in the amount of $7,800 to Babson Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,500. Fret uses the perpetual inventory system and the gross method of accounting for sales. Babson pays the invoice on March 17 and takes the appropriate discount. The journal entry that Fret makes on March 17 is: