3. Cash and credit sales, with returned merchandise. (a) Merchandise is sold for $360 cash. (b) $20 of merchandise sold for $360 is returned for refund. (c) Merchandise is sold on account for $280. (d) $25 of merchandise sold for $280 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 Sales Returns and Allowances