On August 12, Espresso Inc. sells merchandise worth $200,000 (gross sales price) to Crescendo Inc., terms 4/10, n/30. Espresso grants cash discounts on amounts paid within the discount period. Espresso estimates unrecorded returns at the end of the reporting period. Espresso summarized the following transactions. Aug. 12 Sales of $200,000 of merchandise to Crescendo. Aug. 17 Returns and allowances of $30,000 (gross) are granted Crescendo. Aug. 19 Espresso collects $115,200 cash from Crescendo on its account. Aug. 24 Returns and allowances of $24,000 (gross) are granted Crescendo on items not yet paid for. Aug. 27 Remainder of the Crescendo account is collected in full. - Sep. 12 Returns and allowances of $10,000 cash (gross) are granted Crescendo on merchandise paid for on August 19. Sep. 14 Returns and allowances of $10,000 cash (gross) are granted Crescendo on merchandise paid for on August 27. Gross Method Net Method Reporting Under the Gross and Net Method b. Prepare Espresso's journal entries (ignoring cost of goods sold) for these transactions under the net method. Account Name Date Aug. 12 > Dr. Cr. 0 0 0 0 To record sales Aug. 17 Aug. 19 Aug. 24 Aug. 27 To record return of merchandise To record cash collections Sep. 12 > > To record return of merchandise Sep. 14 To record cash collections > > > > > > > To record return of merchandise > > > > > To record return of merchandise 0 0 * 0 0* 0 0 % 0 0 % 0 0 * 0 0% 0 0 x 0 0 % 0 0* 0 0 % 0 0 % 0 0 * 0 0% 0 0 %