a. Silver Company purchased $ 56,000 of merchandise from Milton Company on account. Before paying its account, Silver Company returned damaged merchandise with an invoice price of $ 11,680. Assuming use of periodic inventory procedure, prepare entries on both companies books to record both the purchase/sale and the return. 1. Show how any of the required entries would change assuming that Milton Company granted an allowance of $ 3,360 on the damaged goods instead of giving permission to return the merchandise.