6-2B -Inventory Sales and Returns The following transactions occurred for Bob Company: July 14 Sold $1,000 of inventory on account. The inventory cost $700. Terms 3/10,n/30. July 19 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. July 21 Received payment for the amount owing. Bob Company uses a perpetual inventory system. Required: Prepare journal entries based on the transactions above