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

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

a$.$ Prepare Espresso's journal entries $($ignoring cost of goods sold$)$ for the following transactions under the gross method.