Retainage Process with RTS

Hi,

how the accounting is impacted if Return to Supplier(RTS) is created on a Retainage Complex PO. what are the accounting entries of RTS on a Retainage PO with a 10% Retainge.

based on the below Account what would be the impact and what are the entries would be created due to RTS.

Please advice.

Thanks

Std Invoice:

DR      Expenditure (expese) Account - $3000

CR     Invoice Payable Liability Account - $2700

CR     Retainage Payable Liability Account  - $300

 Invoice is Release for Payment:

DR     Invoice Payable Liability Account - $2700

CR     Cash - $2700

Retainage Invoice is Release for Payment:

DR Retainage Payable Liability Account - $300