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? (If no entry is required for a transaction/event, select "No journal entry required" In the first account field.) View transaction list Journal entry worksheet Record the entry for the allowance granted for defective merchandise. Note: Enter debits before credits. Transaction General Journal Debit Credit 1 Record entry Clear entry View general journal