Sales-Related Transactions After the amount due on a sale of $26,600, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment for a cash refund. The cost of the merchandise returned is $15,960. a. What is the amount of the refund owed to the customer? Feedback b. Journalize the entries made by the seller to record the return and the refund. If an amount box does not require an entry, leave it blank. (a) Inventory Estimated Returns Inventory II II 01 II (b) Customer Refunds Payable Cash Sales-Related Transactions The debits and credits for five related transactions, (1) through (5), are presented in the following T accounts. Assume the credit terms were 2/10, n/30, using the net method under a perpetual inventory system. Cash Sales (5) 10,290 (1) 11,760 Accounts Receivable Cost of Goods Sold (1) 11,760 (3) 1,470 (2) 7,000 (5) 10,290 Inventory (4) 900 (2) 7,000 Estimated Returns Inventory (4) 900 Customer Refunds Payable (3) 1,470 a. Describe each transaction. 1. Sold merchandise on account, net of discount. 2. Recorded the cost of the goods sold and reduced the inventory account. 3. Granted a credit against a customer's accounts receivable for returned merchandise. 4. Updated the inventory account for the cost of the merchandise returned. 5. Received the balance due. b. What was the invoice amount of the merchandise that was returned