a. Silver Company purchased \(\$ 56,000\) of merchandise from Milton Company on account Before paying its account, Silver Company returned damaged merchandise with an invoice price of \(\$ 11,680\). Assuming use of periodic inventory procedure, prepare entries on both companies' books to record both the purchase/sale and the return.

b. Show how any of the required entries would change assuming that Milton Company granted an allowance of \(\$ 3,360\) on the damaged goods instead of giving permission to return the merchandise.