products to customers in Ontario and Quebec, and completed the following transactions in October, 2015: Credit Sales Sales Returns Date of Collection Date Amount Amount Terms 2/10, n/30 Oct 3 $ 800 Oct 8 11 1,200 3/10, n/30 Oct 14 $ 500 17 7,000 1/10, n/30 20 1,200 29 21 1,700 2/10, n/60 23 400 27 23 2,500 2/10, n/30 27 500 28 Telfer Inc. uses a perpetual inventory system. The merchandise returned on October 23 had a cost of $200 and was returned to inventory. The journal entry for the return on October 23 is Date 16 Cash Merchandise Inventory Operating Expense Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold Sales Returns and Allowances Accounts Receivable Merchandise Inventory Cost of Goods Sold Sales Returns and Allowances Cash Merchandise Inventory Accounts Receivable Operating Expense 400 200 400 200 392 196 400 200 400 200 400 200 392 196 400 200