Answer:
the requirements are missing, so I looked for them on similar questions. Journal entries need to be recorded regarding all the transactions with Baker Co.:
May 5, 2013, 900 units sold to Baker Co., credit terms 2/10 n/60
Dr Accounts receivable 13,500
Cr Sales revenue 13,500
Dr Cost of goods sold 9,900
Cr Inventory 9,900
a. May 7, 2013, Baker returns 315 units
Dr Sales returns and allowances 4,725
Cr Accounts receivable 4,725
Dr Inventory 3,465
Cr Cost of goods sold 3,465
b. May 8, 2013, sales allowance given to Baker to compensate damaged units
Dr Sales returns and allowances 525
Cr Accounts receivable 525
c. May 15, 2013, sales allowance given to Baker to compensate wrong color of 14 units
Dr Sales returns and allowances 110
Cr Accounts receivable 110
May 15, 2013, Baker returns 36 units
Dr Sales returns and allowances 540
Cr Accounts receivable 540
Dr Inventory 396
Cr Cost of goods sold 396
