On August 15, KOT Company sold merchandise for $5,200 on terms of n/30

to Shannon Conspany. On August 20, Shannon returned some of the merchandise for

a credit of $1,200, and on August 25, Shannon paid the balance owed. Use T accounts

to record the sale, return, and receipt of cash under the perpetual inventory system for

KOT. The cost of the merchandise sold on August 15 was $3,000, and the cost of the

merchandise returned to inventory on August 20 was $700.