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I am having trouble with this one entry Jan, 20 Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned

I am having trouble with this one entry "Jan, 20 Liu Corp. returned $500 of defective merchandise from its invoice dated January 13. The returned merchandise, which had a $320 cost, is discarded. (The policy of Computer Solutions is to leave the cost of defective products in cost of goods sold.)" I need help with making the journal entry. The journal entry I made is shown below:

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Is there supposed to be a second journal entry pertaining to the $320 cost of the merchandise that was returned? Because as I see it, it says it is discarded and states, "to leave the cost of defective products in cost of goods sold." So, that means I'm not supposed to post it, right? Or am I wrong?

Jan. 20 500 Sales Return & Allowances A/R-Liu Corp. 500

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