Journalize the following transactions for the seller, Smith Company, using the gross method to account for sales discounts. Assume a perpetual inventory system. Make sure to enter the day for each separate transaction. August 6 August 12 Sold goods costing $9,000 to Reed Company on account, $15,000, terms 2/10, n/30. The goods are sold EOB shipping point, freight prepaid by seller, $260. Reed Company returned damaged merchandise previously purchased on account, $3,300 August 16 Received the amount due from Reed Company. Note: The entry to record the shipping payment to the delivery company is not required in this problem. Date Explanation. Check Account Title Debit Credit