Record the following transactions for Wheeler Company:
Wheeler sold $2,000 of merchandise to Ellis Inc., terms 2/10, n/30.
Eliis returned $400 of the merchandise to Wheeler.
Wheeler receives payment from Ellis.

I need help with this problem. I am not sure what entries to make with the sold merchandise and the return one.

I think that it would be

sold merchandise debit 2000

return sales and allowances credit 400?