Journalizing Sales, Sales Returns and Allowances, and Cash Receipts Prepare journal entries for the following transactions. Aug. 4 Sold merchandise on account to S. Miler for $370 plus sales tax of 4%, with 2/10,n/30 cash discount terms. 6 Sold merchandise on account to K. Krtek for $230 plus sales tax of 4%. 10 S. Miller returned merchandise purchased on August 4 for $50 plus sales tax for credit. 13 S. Miller paid the balance due on her account. 15K. Krtek returned merchandise purchased on August 6 for $40 plus sales tax for credit. 20K. Krtek paid the balance due on his account