Exercise 18-19 On June 3, 2017, Waterway Company sold to Ann Mount merchandise having a sales price of $8,700 (cost $6,090) with terms of n/60, f.o.b. shipping point. Waterway estimates that merchandise with a sales value of $870 will be returned. An invoice totaling $110 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Waterway $300 of merchandise containing flaws. Waterway estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $23, paid by Waterway on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Waterway Company to record all the events in June and July. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Account Titles and Explanation Debit Credit Jun. 3, 2017 Accounts Receivable Sales Revenue (To record sales) Cost of Goods Sold Inventory (To record cost of goods sold) Jun. 8, 2017Sales Returns and Allowances Accounts Receivable To record sales returns) Returned Inventory Cost of Goods Sold Activate Windows Go to Settings to activate Windows