c. On 9/12 Year 7 $2,000 of ACCOUNTS RECEIVABLE is collected in CASH, after the discount period. Phrase Account Category Affect Dr. or Cr. 1st: ALSE RE contra + Dr Cr 2nd: AL SE RE contra + - Dr Cr Accounts Debit Credit d. On 9/28 Year 7 merchandise originally sold for $4,000 on 9/1 Year 7 and collected on 9/10 Year 7 is received back from the customer (SALES R&A) and a credit memo (a credit to A/R) is issued by the seller. $2,400 of merchandise is returned to INVENTORY and the COST OF GOODS SOLD is reversed. [Hint: the amount of cash involved in this transaction must take the 2% discount into account.] Phrase Account Affect Dr. or Cr. Category AL SE RE contra 1st: SALES R&A Dr Cr 2nd: AL SE RE contra + - Dr Cr 3rd: AL SE RE contra + Dr Cr 4th: AL SE RE contra + Dr Cr Accounts Debit Credit SALES R&A A/R