Account. Debit. Credit.

A.

B.

c.

Merchandise with a sales price of $7,000 and cost of $4,900 is sold on account, subject to the following terms: 2/10,n/30. Prior to payment for the goods, the buyer returns some items which had a sales price $1,000 and a cost of $700. The correct amount is then received within the discount period. Record the foregoing transactions of the seller in the sequence indicated below (make the journal entries). (a) Sold the merchandise, recognizing the sale and cost of merchandise sold. (b) Issued the credit memorandum (for the returned items). (c) Received payment from the customer