Emerson Enterprise Company sold goods to Faye Corporation on August 20. The sales price was $87,000 and it cost Emerson $60,900 to make the goods. Faye has 30 days to return the goods for any reason. On September 1, Faye returns $8,000 worth of goods that had a cost to Emerson of $5,600. Emerson expects to be able to resell the goods in the future.

Required:

Prepare accounting entries for Emerson :

1. To record all the entries associated with the sale on August 20

2. To record the entries for the return of the goods on September 1