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 c. Prepare a table showing the effect on Espresso's sales, sales returns and allowances, sales discounts, sales discount forfeitures, and the net effect on revenue under both the gross method and net method (ignoring cost of goods sold). Note: Use a negative sign (-) with any amounts subtracted in the schedule. Gross Method Effect on Net Income Sales revenue $ 0 * Sales returns and allowances Sales discounts 0 * 0 Net increase in revenue $ 0 Net Method Effect on Net Income Sales revenue Sales returns and allowances 0 x 0 Sales discounts forfeited 0 * Net increase in revenue $ 0