4. 5% sales tax, with returned merchandise. (a) Merchandise is sold on account for $390 plus sales tax. (b) Merchandise sold on account for $50 plus sales tax is returned for a credit. (c) Balance on account is received in cash. (d) Merchandise is sold for $260 cash plus sales tax- (e) $50 of merchandise sold for $260 cash plus sales tax is returned for a refund. Cash ( C ) V (e) v (d ) v 273 Accounts Receivable Sales Tax Payable Sales Sales Returns and Allowances Check My Work