Sales-Related Transactions

After the amount due on a sale of $35,700, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $21,420.

a. What is the amount of the refund owed to the customer?

b. Journalize the entries made by the seller to record (a) the refund and (b) the return of merchandise. For a compound transaction, if an amount box does not require an entry, leave it blank.