Apr. 1 sold merchandise for $3,000, with credit terms n/30; invoice dated april 1. the cost of the merchandise is $1,800. apr. 4 the customer in the april 1 sale returned $300 of merchandise for full credit. the merchandise, which had cost $180, is returned to inventory. apr. 8 sold merchandise for $1,000, with credit terms of 1/10, n/30; invoice dated april 8. cost of the merchandise is $700. apr. 11 received payment for the amount due from the april 1 sale less the return on april 4.

The Journal Entry is shown below:-

April 1

Account receivable Dr, $3,000

To Sales revenue $3,000

(Being the sales on account is recorded)

Cost of goods sold Dr, $1,800

To Merchandise inventory $1800

(Being cost of goods sold is recorded)

April 4

Sales return and allowances Dr, $300

To Accounts receivable $300

(Being merchandise returned is recorded)

Merchandise inventory Dr, $180

To Cost of goods sold $180

(Being cost of merchandise returned is recorded)

April 8

Accounts receivable Dr, $1,000

Sales revenue $1,000

(Being sales on account is recorded)

Cost of goods sold Dr, $700

Merchandise inventory $700

(Being cost of goods sold is recorded)

April 11

Cash $2,700

Accounts receivable $2,700

(Being collection on account is recorded)