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. SHOW YOUR WORK FOR THE 4TH JOURNAL ENTRY. SHOW ALL CALCULATIONS.

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.)

Date Account Titles and Explanation Debit Credit June 3, 2017 Accounts Receivable 8,400 Refund Liability 840 Sales Revenue 7,560 (To record sales.) June 3, 2017 Estimated Inventory Returns 500 Cost of Goods Sold 4,500 Inventory 5,000 (To record cost of goods sold.) June 5, 2017 Refund Liability 600 Accounts Receivable 600 (To reduce refund liability.) June 5, 2017 Returned Inventory 310 Loss due to Damaged Inventory 50 Estimated Inventory Returns 360 (To reduce estimated inventory returns.) June 5, 2017 Returned Inventory 310 Estimated Inventory Returns 310 June 7, 2017 Delivery Expense 27 Cash 27 June 12, 2017 Cash 7,644 Sales Discounts 156 Accounts Receivable 7,800Prepare the journal entry, assuming that Ann Mount did not remit payment until August 5. (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.) Date Account Titles and Explanation Debit Credit August 5, 2017 Cash 7,800 Accounts Receivable 7,800