RECORD THE TRANSACTIONS FOR OAKLEY, THE SELLER

Assume Oakley Incorporated-the maker of stylish sunglasses, goggles, and many other leading products-

a) Made merchandise costing $150,000 and sold the merchandise on credit to Sunglass Hut for $375,000 with terms 2/10, n/30.

b) SUNGLASS HUT, the customer, RETURNED TO OAKLEY $20,000 of the merchandise purchased --Oakley reduced Sunglasss account by the return.

c) Sunglass Hut paid the remaining balance within the discount period.

	Account	Debit	Credit
a)	ACCOUNTS RECEIVABLE	375000
	SALES		375000
	COST OF GOODS SOLD	150000
	INVENTORY		150000
b)	SALES RET AND ALLO	20000
	ACCOUNTS RECEIVABLE		20000
	INVENTORY	8000
	COST OF GOODS SOLD		8000
c)	CASH	347900
	SALES DISCOUNT	7100
	ACCOUNTS RECEIVABLE		355000

How do you find the cost of inventory and cost of golds sold in B) from the amount returned?