Madison Company uses the perpetual inventory system. Record the journal entries for the following transactions:

a. On July 16, Madison sold \(\$ 500\) of merchandise with terms of \(3 / 10, n / 30\). The cost of the merchandise was \(\$ 200\)

b. On July 19 , the customer returned \(\$ 100\) of the merchandise from \((a)\). The cost of the merchandise was \(\$ 40\).

c. On July 22, the customer paid the entire balance due to Madison.