Question $1$ Partially correct

Mark $14\mathrm{.}03$ out of $33\mathrm{.}33$

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Analyzing Financial Results of Merchandising Transactions Under the Gross and Net Methods

On August $12,$ Espresso Inci sells merchandise worth $$200,000($gross sales price$)$ to Crescendo Inc., terms $4/10,\frac{n}{30}.$ Espresso grants cash discounts on amounts paid within the discount period. Espresso estimates unrecorded returns at the end of the reporting period. Espresso summarized the following transactions.

Aug. $12$ Sales of $$200,000$ of merchandise to Crescendo.

Aug. $17$ Returns and allowances of $$30,000($gross$)$ are granted Crescendo.

Aug. $19$ Espresso collects $$115,200$ cash from Crescendo on its account.

Aug. $24$ Returns and allowances of $$24,000($gross$)$ are granted Crescendo on items not yet paid for.

Aug. $27$ Remainder of the Crescendo account is collected in full.

Sep. $12$ Returns and allowances of $$10,000$ cash $($gross$)$ are granted Crescendo on merchandise paid for on August $19.$

Sep. $14$ Returns and allowances of $$10,000$ cash $($gross$)$ are granted Crescendo on merchandise paid for on August $27.$

Gross Method Net Method Reporting Under the Gross and Net Method

b$.$ Prepare Espresso's journal entries $($ignoring cost of goods sold$)$ for these transactions under the net method.

$\backslash$table$[[$Date$,$Account Name,,Dr$.,$Cr$.],[$Aug$,12,$Accounts Receivable,$v,0,200,000],[,$Sales Revenue,$,20,000,],[,$To record sales,,,$],[8.17,$Sales Returns and Allowances,$,30,000,]]$