After the amount due on a sale of $40,000, terms 2/10, n/eom, is received from a customer

Question:

After the amount due on a sale of $40,000, 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 $24,000.

(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.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...