=+PE 6-6A Transactions for buyer and seller obj. 3 EE 6-6 p. 273 Santana Co. sold merchandise to Birch Co. on account, $6,000, terms 2/15, n/30. The cost of the merchandise sold is $4,000. Santana Co. issued a credit memo for $800 for merchandise returned and later received the amount due within the discount period.

The cost of the merchandise returned was $550. Journalize Santana Co.’s and Birch Co.’s entries for the payment of the amount due.