Journalize the following merchandise transactions:

a. Sold merchandise on account, $17,050 with terms 2/10, n/30. The cost of the merchandise sold was $10,230.

Sale	Accounts Receivable
	Sales
Cost	Cost of Merchandise Sold
	Merchandise Inventory

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(a) When the perpetual inventory system is used, two entries are recorded each time a sale is made. In the first entry, revenue on account is recorded by debiting Accounts Receivable and crediting Sales. A second entry records the cost of the merchandise sold with a debit and merchandise inventory is credited.

b. Received payment less the discount.

	Cash
	Accounts Receivable

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(b) Since the exercise assumes the invoice was paid within the discount period, the seller deducts 1% of the invoice amount and it is recorded as a debit to Sales Discount, while crediting Accounts Receivable for the total amount of the invoice. The difference between these two accounts is recorded as a debit to Cash.

c. Issued a credit memo for returned merchandise that was sold for $11,200 terms n30 The cost of the merchandise returned was $6,720.

Refund	Customer Refunds Payable
	Accounts Receivable
Inventory	Merchandise Inventory
	Estimated Returns Inventory