On September 12,Vander Company sold merchandise in the amount of $5,800 to Jepson Company,with credit terms of 2/10,n/30.The cost of the items sold is $4,000.Vander uses the periodic inventory system.On September 14,Jepson returns some of the merchandise.The selling price of the merchandise is $500 and the cost of the merchandise returned is $350.Jepson pays the invoice on September 18,and takes the appropriate discount.The journal entry that Vander makes on September 18 is:

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The journal entry on September 12 will be:
Accounts Receivable - Jepson Company       $5,800
Sales                                                                  $5,800
(To record the sale of merchandise on credit)
The journal entry on September 14 will be:
Sales Returns and Allowances                            $500
Accounts Receivable - Jepson Company ([$5,800 - $500] x 1) $5,300
Inventory                                                                     $350
Cost of Goods Sold ($350/$4,000 x $5,300)         $464
(To record the return of merchandise)
Therefore, on September 18, Vander will receive the cash from Jepson Company net off the discount. Thus, the journal entry on September 18 will be:
Accounts Receivable - Jepson Company             $5,228 ([$5,300 - ($5,300 x 2%)] )
Cash                                                                                $5,228
(To record the collection of cash from Jepson Company)

On September 12,Vander Company Sold Merchandise in the Amount of $5,800