Hair Care Inc. is a wholesaler of hair supplies. Hair Care uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a.	Sold merchandise for cash (cost of merchandise $27,797)	$	50,200
b.	Received merchandise returned by customers as unsatisfactory (but in perfect condition), for cash refund (original cost of merchandise $260)		500
c.	Sold merchandise (costing $4,250) to a customer, on account with terms 1/10, n/30		10,000
d.	Collected half of the balance owed by the customer in (c) within the discount period		4,950
e.	Granted an allowance to the customer in (c)		110
3. Prepare journal entries to record transactions (a)(e). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Record the sale of merchandise. 2 Record the cost of merchandise sold. 3 Record the merchandise received from the customers as unsatisfactory (but in perfect condition), for cash refund. 4 Record the original cost of merchandise returned. 5 Record the sale of merchandise. 6 Record the cost of merchandise sold. 7 Record the collection of half of the balance owed by the customer in (c), paid within the discount period. 8 Record the allowance granted to the customer in (c).

Journal entry worksheet Record the cost of merchandise sold. Note: Enter debits before credits. Transaction General Journal Debit Credit a-2. Sales returns and allowances 500 Cash 500 260 Inventory Cost of goods sold 260 Record entry Clear entry View general journal