On June 3, 2017, Cullumber Company sold to Ann Mount merchandise having a sales price of $8,900 (cost $7,000) with terms of 2/10, n/60, f.o.b. shipping point. Cullumber estimates that merchandise with a sales value of $890 will be returned. An invoice totaling $130, 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 Cullumber that $250 of merchandise contained flaws. The same day, Cullumber issued a credit memo covering the defective merchandise and asked that it be returned at Cullumbers expense. Cullumber estimated the returned items to have a fair value of $120. The freight on the returned merchandise was $21, paid by Cullumber on June 7. On June 12, the company received a cheque for the balance due from Mount. Prepare journal entries for Cullumber Company to record all the events noted above, assuming sales and receivables are entered at the gross selling price.