Ayayai Compahy sold $110000 worth of goods on account to Waterway inc on June 20 . Ayayal marks all goods up 25% on cost. Waterway has 45 days to return the goods for any reason. On July 1 . Waterway returns $9625 worth of goods. Ayayal expects to be able to resell the returned goods at a profit. The journal entries for Ayayai to record the initial sales on June 20 included debits to No entry can be made because the items can be retumed. Accounts Recelvable for $110000, and Cost of Goods 501 d for 588000 . Inventory for $110000, and Cash for $88000. Accounts Receivable for $110000, and 5a ales of $68000