Journalizing Sales, Sales Returns and Allowances, and Cast Receipts Prepare journal entries for the following transactions. Aug. 4 Sold merchandise on account to S. Miller for $340 plus saies tax of 4%, with 2/10,n/30 cash discount terms. 6 Sold merchandise on account to K. Krtek for $150 plus sales tax of 4%. 10 S. Miller returned merchandise purchased on August 4 for $40 plus sales tax for credit. 13 S. Miller paid the balance due on her account. 15 K. Krtek returned merchandise purchased on August 6 for $50 plus sales tax for credit. 20K. Krtek paid the balance due on his account. 7 check My Work Selling merchandise on account with sales tax involves an increase to accounts receivable, sales, and sales tox pay. Returned merchandise with sales tax involves an increase in sales returns and allowance, and a decrease in sales ta Collection on account within the discount period involves an increase in cash and sales discounts, and a decrease in Collection on account outside the discount period involves an increase in cash and a decrease in accounts receivable