Gross and Net Sales Midwest Metal Products, Incorporated, reported the following in 20X8 (S in thousands): Sales Cash discounts on sales Sales returns and allowances $700 20 40 1. Prepare the revenue section of the 20X8 income statement. 2. Prepare journal entries for

(a) initial revenue recognition for 20X8 sales,

(b) sales returns and allowances, and

(c) collection of accounts receivable. Assume that all sales were on credit and all accounts receivable for 20X8 sales were collected in 20X8. Omit explanations.