Sales-Related Transactions After the amount due on a sale of $35,000, terms 1/10,n/ eom, is received from a customer within the discount period, the seller consents to a $3,800 cash refund for defective merchandise. Journalize the entry to record the cash refund. If an amount box does not require an entry, leave it blank. Income Statement and Accounts for Merchandiser For the fiscal year, sales were $7,346,000 and the cost of merchandise sold was $4,170,000. a. What was the amount of gross profit? b. If total operating expenses were $243,000, could you determine net income? c. Is Customer Refunds Payable an asset, liability, or owner's equity account? What is its normal balance