Sales Transactions Journalize the following merchandise transactions, using the net method under a perpetual inventory system. a. Sold merchandise on account, $19,700 with terms 1/10, n/30. The cost of the goods sold was $11,820. If an amount box does not require an entry, leave it blank. Accounts Receivable Sales Cost of Goods Sold Inventory b. Received payment less the discount. If an amount box does not require an entry, leave it blank. Cash Accounts Receivable c. Refunded $500 to customer for defective merchandise that was not returned. If an amount box does not require an entry, leave it blank. Customer Refunds Payable Cash 38