PLEASE FILL IN THE BLANKS. COPY AND PASTE EVERYTHING THAT IS CORRECT. USE BOLD FONT TO CORRECT ANY MISTAKES IF THERE ARE ANY.. UNDERLINE THE NUMBERS USED TO FILL IN THE BLANKS.

FOCUS ON THE BOTTOM PART ONLY. FIND RETURNED INVENTORY, THE LOSS, AND ESTIMATED VALUE.

Exercise 6-6

On June 3, 2017, Sheridan Company sold to Ann Mount merchandise having a sales price of $8,400 (cost $5,000) with terms of 2/10, n/60, f.o.b. shipping point. Sheridan estimates that merchandise with a sales value of $840 will be returned. An invoice totalling $140, terms n/30, was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Mount notified Sheridan that $600 of merchandise contained flaws. The same day, Sheridan issued a credit memo covering the defective merchandise and asked that it be returned at Sheridan's expense. Sheridan estimated the returned items to have a fair value of $310. The freight on the returned merchandise was $27, paid by Sheridan on June 7. On June 12, the company received a cheque for the balance due from Mount.

a) Make journal entries for Sheridan Company to record all the events noted above, assuming sales and receivables are entered at gross selling price.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,225.)

Returned Inventory *............................................. ?

Loss due to Damaged Inventory.................... ....... ?

Estimated Inventory Returns.................. ?