On February 6, Sunland Home sold $95,500 of merchandise to A1 Interiors Company, terms 2/10, net /30. The cost of the merchandise sold was $60,500. On February 8, A1 returned $12,700 of the merchandise purchased on February 6 . The cost of the merchandise returned was $7,700. On February 16 Sunland Home received the balance due from A1. Prepare the journal entries to record the above transactions on Sunland Home Company's books using a perpetual inventory system. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entrles in the order presented in the problem. List debit entries before credit entries.)