Kingbird Company sold merchandise to Moore Company on account for $ 88,000 with credit terms of ?/10, n/30. The cost of the merchandise sold was $ 63,000. During the discount period, Moore Company returned $ 4,800 of merchandise and paid its account in full (minus the discount) by remitting $ 81,536 in cash. Both companies use a perpetual inventory system.

Prepare the journal entries that Kingbird Company made to record the:

(1) sale of merchandise.

(2) return of merchandise.

(3) collection on account.