3. Cash and credit sales, with returned merchandise. (a) Merchandise is sold for $497 cash. (b) $20 of merchandise sold for $497 is returned for a refund. (c) Merchandise is sold on account for $376. (d) $26 of merchandise sold for $376 is returned for a credit. (e) Payment is received for balance owed on merchandise sold on account. Cash Accounts Receivable Sales Sales Returns and Allowances 4.6% sales tax, with returned merchandise. (a) Merchandise is sold on account for $480 plus sales tax. (b) Merchandise sold on account for $20 plus sales tax is returned. (c) The balance on the account is received in cash. (d) Merchandise is sold for $290 cash plus sales tax. (e) $30 of merchandise sold for $290 cash plus sales tax is returned for a refund. Cash Accounts Receivable Sales Tax Payable