Inventory that cost $420 is sold for $700, with terms of 2/10, n/30. a. Prepare the journal entries to record the sale of merchandise. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is complete and correct. No Transaction General Journal Debit Credit 1 a(1) 700 Accounts Receivable Sales Revenue 700 2 a(2) 420 Cost of Goods Sold Inventory 420 b. Prepare the journal entries for the collection of the accounts receivable assuming that it occurs during the discount period. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Answer is not complete. No Transaction General Journal Debit Credit 1 b. Sales Discounts Accounts Receivable 24 400