Record the following transactions for Verbatim Company.

1. On August 4, Verbatim sold merchandise on account to Reedy Company for $450, terms 2/10, n/30.

2. On August 7, Verbatim granted Reedy a sales allowance and reduced the cost of the merchandise by $50 because some of the goods were slightly damaged.

3. On August 12, Reedy paid the account in full.