Transactions for Buyer and Seller Ellis Co. sold merchandise to Vargas Co. on account, $9,000, terms 2/15, n/30. The cost of merchandise sold is $5,400. Assume all discounts are taken. Journalize Ellis Co.'s entries for (a) the sale on account and (b) the collection of the amount due (a) Accounts Receivable-Vargas Co.8,820 aAccounts Receivable-Vargas Co. Sales 8 8,820 Cost of Merchandise Sold 5,400 Merchandise Inventory 5,400 (b) Cash Accounts Receivable-Vargas Co. Feedback Check My Work ournalize Vargas Co.'s entries for (a) the purchase of merchandise on account and (b) the payment of the amount due. (a) Merchandise Inventory Accounts Payable-Ellis Co. Accounts Payable-Ellis Co. Cash