On July 1, 2020 Walter Products enters into a contract with Jesse Builders to supply $180,000 of fine high quality liumber, terms are 2/30, n/45 shipping point. The cost of the lumber to Walter was $130,000. Walter has a stated policy that products may be returned within 15 days of the date of the sale. Walter estimates returns based on the expected value method and sales discounts are estimated using the most likely outcome. Based on past experience returns are 5% of sales 40% of the time, 15% of sales 30% of the time and 20% of sales 30% of the time. Jesse will most likely pay within the discount period. Walter uses the contract-based approach for revenue recognition and the lumber was shipped to Jesse on July 5, 2020. REQUIRED: Prepare the journal entry to recognize revenue and the journal entry to record the cost of goods sold