can you explain July 16 return?

Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction,

14.	Sold merchandise on account to Loeb Co., $16,000, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $9,000.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $3,000 to Loeb Co. for merchandise returned from the sale on July 14. The cost of the merchandise returned was $1,800.

Date Account Debit Credit July 14-sale Accounts Receivable-Loeb Co. 15,840 Sales 15,840 Date Account Debit Credit July 14-cost Cost of Goods Sold 9,000 Inventory 9,000 Account Credit Date July 15 Debit 17,325 Cash V Accounts Receivable-Peacock Company 17,325 Credit Date Account July 16-return Customer Refunds Payable Debit 3,000 x Accounts Receivable-Loeb Co. 3,000 x Date Account Debit Credit July 16-cost Inventory 1,800 Estimated Returns Inventory 1,800