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 eu Accounts Receivable 14,850 (3) (5) 990 13,860 Merchandise Inventory 575 (2) 8,800 Estimated Returns Inventory 575 Customer Refunds Payable 990 (3) Sales 14,850 Cost of Merchandise Sold 8,800 (2) 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.