On July 1, Handley Corp. sold merchandise on account to Cambridge Inc. for $48,800, terms n/30. The cost of the merchandise sold was $26,800. Handley expected a return rate of 5%. (List all debit entries before credit entries. Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter O for the amounts.) Date Account Titles and Explanation Debit Credit July 1 Accounts Receivable 48800 Sales 46360 Sales Returns and Allowances 2440 (To record credit sale) July 1 Cost of Goods Sold 25460 Estimated Inventory Returns 1340 Inventory 26800 (To record cost of merchandise sold)