Exercise 6-2 Prepare entries for merchandise purchase/sale, return, and allowance on both buyer's and seller's books L.O. 1,3) Silver Company purchased $48,200 of merchandise from Milton Company on account. Before paying its account, Silver Company returned damaged merchandise with an invoice price of $8,340. Assuming use of the periodic inventory procedure, prepare entries on both companies' books to record both the purchase/sale and the return. Show how any of the required entries would change assuming that Milton Company granted an allowance of $6,820 on the damaged goods instead of giving permission to return the merchandise