You are a merchandiser that buys wild widgets from a vendor for $70 each, marks them up, and sells them for $100 each. Journalize the three transactions below.You use the perpetual inventory system and reduce inventory when it is sold.

You sell 80 wild widgets to a customer on account, terms 2/10 net 30.

To journalize the three transactions, follow the steps below:

Step 1: Identify the accounts involved in each transaction.

For the first transaction, where you sell 80 wild widgets to a customer on account, the accounts involved are:

- Accounts Receivable (customer's account)
- Sales Revenue

Step 2: Determine the amounts for each account.

The selling price is $100 per wild widget, and you sold 80 widgets. So, the total sales revenue would be $100 x 80 = $8000.

Step 3: Journalize the transaction.

To journalize the transaction, you would record the sale by crediting the Sales Revenue account and debiting the Accounts Receivable account. Here is the journal entry:

Date | Account Debit | Account Credit | Amount
--------------------------------------------------------------
[Date] | Accounts Receivable | Sales Revenue | $8000

As per the terms 2/10 net 30, it means the customer is eligible for a 2% discount if they make the payment within 10 days. Thus, only 98% of the sales revenue is due in case the discount is not taken.

After the journal entry, you can track the amount owed by the customer in the Accounts Receivable account, and reduce the inventory accordingly.