1)Sold Merchandise on account costing 10,000; terms were 2/10, n/30

2)Customer returned merchandise costing 400 that had been sold on account for 500 (part of the 10,000 sale in item 1)

3) Received payment from customer for merchandise sold in item 1.

4) Purchased on account merchandise for resale for 6,000; terms were 2/10, n/30 (purchases recorded at invoice price)

5) Paid 200 freight on the 6,000 purchase; terms were FOB shipping point, freight collect

6) Returned merchandise costing 300, (part of the 6,000 purchase)

7) Paid merchandise purchased in item 4