JULAI 11 On July 1. Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, 1/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system and the gross method. On July 5, Tracey notifies Ferguson that some of the merchandise is defective. Ferguson agrees to a full refund for the items, and Tracey is allowed to keep the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise is $350. The entry or entries that Ferguson must make on July 5 is: 16 points 01:45:08 Multiple Choice 500 Accounts receivable Sales returns and allowances Cost of goods sold Merchandise inventory see 35e 350 Sales returns and allowances 350 13 Netherland Corporation has the following unadjusted balances: Accounts Receivable, $80,000 (debit), and Allowance for Sales Discounts $300 (credit). Of the receivables, $50,000 of them are within the 2% discount period, and Netherland expects buyers to take $1,000 in future-period discounts ($50,000 * 2%) arising from this period's sales. The adjusting entry to estimate sales discounts is (are): 16 points 8 01.450 Multiple Choice 80,000 Accounts Receivable Sales 80,000 Sales Discounts Allowance for Sales Discounts 1, eee 1,000