The following transactions of Linens and Things occurred in July.

DATE TRANSACTIONS

July $5$ Accepted a return of damaged merchandise from Terri McDonald, a credit customer; issued Credit Memorandum $301$ for $$540,$ which includes sales tax of $$40$; the original sale was made on Sales Slip $1610$ of June $30.$

$21$ Gave an allowance to Robert Lynch$,$ a credit customer, for merchandise that was slightly damaged but usable; issued Credit Memorandum $302$ for $$864,$ which includes sales tax of $$64$; the original sale was made on Sales Slip $1663$ of July $17.$

Prepare journal entries to record the above transactions.