Question

Ellis Co. sold merchandise to Rather Co. on account, $7,150, terms 2/15, n/30. The cost of merchandise sold is $4,290. Ellis Co. issued a credit memo for $850 for merchandise returned and later received the amount due within the discount period. The cost of the merchandise returned was $510.
Journalize Ellis Co.'s entry for the payment of the amount due. For a compound transaction, if an amount box does not require an entry, leave it blank.

Journalize Rather Co.'s entry for payment of the amount due. If an amount box does not require an entry, leave it blank.