Sales-Related Transactions The debits and credits for four related entries for a sale of $15,000, terms 1/10, n/30, are presented in the following T accounts, Cash (5) 13,860 Accounts Receivable 990 14,850 (3) (5) 13,860 Merchandise Inventory 575(2) (4) 8,800 Estimated Returns Inventory 575 Customer Refunds Payable 990 (3) Sales Previous Customer Refunds Payable (3) 990 Sales (1) 14,850 Cost of Merchandise Sold (2) 8,800 Accepted a return of merchandise and issued a credit memo which is less discount. Received the balance due. Recorded the cost of the merchandise sold and reduced the merchandise inventory account. Sold merchandise on account. Updated the merchandise inventory account for the cost of the merchandise returned. 5. Check My Work Estimated Returns Inventory 575 Customer Refunds Payable (3) 990 Sales Accepted a return of merchandise and issued a credit memo which is less discount. Received the balance due. Recorded the cost of the merchandise sold and reduced the merchandise inventory account. Sold merchandise on account. Updated the merchandise inventory account for the cost of the merchandise returned. 1. 2. 3. 4. 5