Misha's Crystal Ball, Inc. uses the gross method of accounting for sales and a perpetual inventory system and had the following sales transactions during July:

July 7	Sold crystal balls to Crystals Galore on account for $12,400, terms 3/10, n/30. The items sold had a cost of $7,500.
July 12	Crystals Galore returned merchandise that had a selling price of $1,800. The merchandise was put back into the inventory. The cost of the merchandise returned was $720.
July 16	Crystals Galore paid for the merchandise sold on July 7 less the return, taking any appropriate discount per the credit terms.

Prepare the necessary journal entries for the above transactions.