On June 3, 2017, Blue Company sold to Ann Mount merchandise having a sales price of $8,400 (cost $5,040) with terms of n/60, f.o.b. shipping point. Blue estimates that merchandise with a sales value of $840 will be returned. An invoice totaling $140 was received by Mount on June 8 from Olympic Transport Service for the freight cost. Upon receipt of the goods, on June 8, Mount returned to Blue $400 of merchandise containing flaws. Blue estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $24, paid by Blue on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Blue Company to record all the events in June and July.