On June 3, 2014, Hunt Company sold to Ann Mount merchandise having a sales price of $8,560 (cost $5,992) with terms of 2/10, n/60, f.o.b. shipping point. Hunt estimates that merchandise with a sales value of $856 will be returned. An invoice totaling $128, terms n/30, was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 5, Mount notified Hunt that $321 of merchandise contained flaws. The same day, Hunt issued a credit memo covering the defective merchandise and asked that it be returned at Hunts expense. Hunt estimates the returned items to have a fair value of $128. The freight on the returned merchandise was $26, paid by Hunt on June 7. On June 12, the company received a check for the balance due from Mount. Prepare the journal entry assuming that Ann Mount did not remit payment until August 5