Prepare journal entries to record each of the following sales transactions of TFC Merchandising. TFC uses a perpetual inventory system and the gross method.

May 1. Sold merchandise for $600, with credit terms n∕60. The cost of the merchandise is $400. 

9. The customer discovers slight defects in some units. TFC gives a price reduction (allowance) and credits the customer’s accounts receivable for $40 to compensate for the defects.
June 4. The customer in the May 1 sale returned $75 of merchandise for full credit. The merchandise, which had cost $50, is returned to inventory. 

30. Received payment for the amount due from the May 1 sale less the May 9 allowance and June 4 return.