6-2B -Inventory Sales and Returns The following transactions occurred for Bob Company: July 14 July 19 Sold $1,000 of inventory on account. The inventory cost $700. Terms 3/10, n/30. Inventory was returned broken. The inventory could not be repaired, and the customer did not want a replacement. The inventory was discarded. A credit of $200 was applied to their account. The original cost of the inventory was $120. Received payment for the amount owing. July 21 Bob Company uses a perpetual inventory system. Required: Prepare journal entries based on the transactions above