16. Shinhan Corp. agreed and authorized Jones Company, a customer, a return of $1,000 of goods sold on account. Shinhan Corp. records sales returns (and allowances) as a contra account to sales revenue. Which is the correct journal entry to record this transaction?

a.	Sales returns and allowances $1,000 Accounts receivable $1,000

b.

Sales revenue $1,000 Accounts receivable $1,000

c.

Sales returns and allowances $1,000 Inventory $1,000

d.

Account receivable $1,000 Sales returns and allowances $1,000

17. Amy Company sold merchandise of $8,000 to Tory Turnbull with terms 2/10, n/30. Amy Company recorded this transaction using the gross method. If Tory Turnbull paid for all the merchandize within the discount period, the journal entry that Amy Company will make to record the collection of cash would include a:

.

1. Credit to Sales Discount of $160

2. Credit to Account receivable $7,840

3. Debit to Sales Discount of $160

4. Credit to Cash of $160