On July 2, 2018, Lake Company sold to Sue Black merchandise on credit having a sales price of $9,000 (cost $5,400) with terms of 2/10, n/30. Upon receipt of the goods, on July 3, Black returned $350 of merchandise that contained flaws (cost $210). The freight on the returned merchandise was $20 paid by Lake on July 7. On July 10, the company received a check for the balance due from Black.

Prepare journal entries on July 2, July 3, July 7, and July 10 in Lake Companys book to record all the events noted above assuming sales and receivables are entered at gross selling price.