For the credit entry on Aug 15, I tried both the merchandise inventory account and sales, they were both incorrect.

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Your answer is partially correct. Try again. On August 7, Imports to You Co. sold merchandise with a cost of $250 for $600 to Jade Biggs, who used an Imports to You Co. credit card for payment. On August 15, Jade returned $100 of merchandise that was damaged and the goods were scrapped. On September 7, Imports to You Co. recorded interest on the credit card balance owing on Jade Biggs's account. Imports to You Co. charges 18% on any balance owing on its credit cards. Prepare journal entries to record the above transactions. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Record journal entries in the order presented in the problem. Round answers to 2 decimal places, e.g. 52.75.) Date Account Titles and Explanation Debit Credit Aug. 7 $Credit Card Receivable-). Biggs Sales 600 (To record sale of merchandise) Aug. 7 Cost of Goods Sold 250 Merchandise Inventory 250 (To record cost of goods sold) Aug. 15 Sales Returns and Allowances 100 Sales 100 Sept. 7T Credit Card Receivable-J. Biggs 90 Interest Revenue 90 Credit Card Receivable-J. Biggs Cost of Goods Sold Interest Revenue Merchandise Inventory No Entry Sales Sales Returns and Allowances