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Problem - Sales related transactions - After the amount due on a sale of $16,000, terms 2/10, n/eom, is received from a customer within the discount period, the seller consents to the return of the entire shipment. The cost of the merchandise returned was $10,000.
Required -
(a) What is the amount of the refund owed to the customer?
(b) Illustrate the effects on the accounts and financial statements of the return and the refund.
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