On July Lake Company sold goods with a sales price of $cost $ at terms of n fob shipping point. Lake estimated that goods with a sales value of $cost $ will be returned. Lake determined that the cost of recoviering the goods will be immaterial, and the returned goods can be resold at a profit. On July a customer returned goods with a sale value of $cost $ The same day, Lake issued a credit memo to the customer. On July Lake Comapny beleived the original estimate of returns is appropriate.

Require: Prepare the journal entries for Lake Comapny to record all the events noted above.