10) Forrest's Cycle Shop, Inc. uses the gross method of accounting for sales and a perpetual inventory accounting system and had the following transactions during the month of July: Sold merchandise to a customer on credit for $600, terms 2/10, n30. The cost of the merchandise sold was $350 Sold merchandise to a customer for cash of $425. The cost of the merchandise was $250. Sold merchandise to a customer on credit for $1,300, terms 2/10, n/30. The July 3 July 4 July 6 July 8 July 15 July 31 Prepare the required journal entries that Forrest's Cycle Shop, Inc. must make to record these cost of the merchandise sold was $750. The customer from July 3 returned merchandise with a selling price of $100. The cost of the merchandise returned was $55 The customer from July 6 paid the full amount due, less any appropriate discounts earned. The customer from July 3 paid the full amount due, less any appropriate discounts earned. transactions