Venti Construction Supplies uses a perpetual inventory system and the contract-based approach for revenue recognition. Management estimates that 15% of sales will be returned by customers within the 30-day return period. The company had the following transactions in April and May.
Apr. 16 Sold $17,000 of merchandise to Tiger Building & Decorating, terms n/30, FOB destination. The merchandise had cost Venti Construction Supplies $9,860.

17 Paid freight costs of $170 for the April 16 sale.

18 Tiger Building & Decorating returned $1,500 of merchandise; it had been damaged during delivery and was scrapped. The cost of the merchandise returned was $870. May 15 Collected the balance due from Tiger Building & Decorating. For each transaction,

(a) Prepare a journal entry to record the transaction

(b) Indicate the amount by which the transaction increased or decreased total assets, total liabilities, and owner’s equity. Indicate NE (no effect) if the transaction neither increased nor decreased any of these items.