On July 2, 2021, Vaughn Company sold to Sue Black merchandise having a sales price of $9,300 (cost $5,580 ) with terms of 2/10. n/30. f.o.b. shipping point. Vaughn estimates that merchandise with a sales value of $810 will be returned. An invoice totaling $110, terms n/30, was received by Black on July 6 from Pacific Delivery Service for the freight cost. Upon receipt of the goods, on July 3 , Black notified Vaughn that $300 of merchandise contained flaws. The same day, Vaughn issued a credit memo covering the defective merchandise and asked that it be returned at Vaughn's expense. Vaughn estimates the returned items to have a fair value of $130. The freight on the returned merchandise was $30 paid by Vaughn on July 7 . On July 12 , the company received a check for the balance due from Black. Prepare journal entries for Vaughn Company to record all the events noted above assuming sales and receivables are entered at gross selling price. (Credit account titles are automatically indented when 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. Record journal entries in the order presented in the problem.) Date Account Titles and Explanation Debit Credit (To record sales and sales return at sale price) (To record sales return at cost price) (To record cost of merchandise which contained flaws) (To record sales return at fair value)