Journalizing sales, sales returns and allowances, and cash receipts prepare journal entries for the following transactions. aug. 4 sold merchandise on account to s. miller for $320 plus sales tax of 4%, with 2/10, n/30 cash discount terms. 6 sold merchandise on account to k. krtek for $210 plus sales tax of 4%. 10 s. miller returned merchandise purchased on august 4 for $20 plus sales tax for credit. 13 s. miller paid the balance due on her account. 15 k. krtek returned merchandise purchased on august 6 for $40 plus sales tax for credit. 20 k. krtek paid the balance due on his account.