FIX the ERRORS.

ONLY USE THESE ACCOUNTS. DO NOT MAKE YOUR OWN ACCOUNTS.

Accounts Payable

Accounts Receivable

Advertising Expense

Allowance for Doubtful Accounts

Cash

Commission Expense

Commission Revenue

Construction Expenses

Contract Asset/Liability

Cost of Goods Sold

Delivery Expense

Estimated Inventory Returns

Interest Expense

Interest Income

Interest Payable

Interest Receivable

Inventory

Inventory on Consignment

Loss due to Damaged Inventory

Miscellaneous Expense

No Entry

Notes Receivable

Refund Liability

Rent Revenue

Returned Inventory

Revenue from Consignment Sales

Revenue from Long-Term Contracts

Sales Discounts

Sales Discounts Forfeited

Sales Returns and Allowances

Sales Revenue

Service Revenue

Service Revenue-Commissions

Unearned Revenue

Unearned Warranty Revenue

Utilities Expense

Warranty Expense

Warranty Liability

Warranty Revenue

Exercise 6-6

On June 3, 2017, Sheridan Company sold to Ann Mount merchandise having a sales price of $8,400 (cost $5,000) with terms of 2/10, n/60, f.o.b. shipping point. Sheridan estimates that merchandise with a sales value of $840 will be returned. An invoice totalling $140, terms n/30, was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Mount notified Sheridan that $600 of merchandise contained flaws. The same day, Sheridan issued a credit memo covering the defective merchandise and asked that it be returned at Sheridan's expense. Sheridan estimated the returned items to have a fair value of $310. The freight on the returned merchandise was $27, paid by Sheridan on June 7. On June 12, the company received a cheque for the balance due from Mount.

Make journal entries for Sheridan Company to record all the events noted above, assuming sales and receivables are entered at gross selling price.(Credit account titles are automatically indented when the 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. Record journal entries in the order presented in the problem. Do not round intermediate calculations. Round final answers to 0 decimal places, e.g. 5,225.)

Date Account Titles and Explanation Debit Credit June 3, 2017 Accounts Receivable 18,400 Refund Liability 1340 Sales Revenue 17,560 (To record sales.) June 3, 2017 Estimated Inventory Returns 1500 Cost of Goods Sold 4,500 Inventory 15,000 (To record cost of goods sold.) June 5, 2017 Refund Liability 1600 TAccounts Receivable 1600 (To reduce refund liability.) June 5, 2017 Returned Inventory 13 10 Loss due to Damaged Inventory Estimated Inventory Returns 1360 (To reduce estimated inventory returns.) x June 5, 2017 No Entry 0 X x No Entry X x June 7, 2017 Delivery Expense 27 X x Cash 27 June 12, 2017 Cash 7,644 [Sales Discounts 156 Accounts Receivable 7,800