Smith & Sons Inc. is a sporting goods manufacturer. The firm uses a periodic inventory system. Smith & Sons shipped $30,000 of defective goods to a retailer. The retailer and Smith & Sons agreed that the retailer would keep the goods in exchange for a $3,000 allowance. The cost of the goods was $20,000.

What journal entry (or entries) would Smith & Sons make to record this agreement? Precise the amount(s).(If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• No journal entry required
• Accounts payable
• Accounts receivable (or cash)
• Cost of goods sold
• Income summary
• Inventory (beginning balance)
• Inventory (ending balance)
• Purchases
• Sales returns and allowances
• Sales revenue