On June 3, 2022, Whispering Company sold to Ann Mount merchandise having a sales price of $7,500(cost$6,750) with terms of n/60, fo.b. shipping point. Whispering estimates that merchandise with a sales value of $750 will be returned. An invoice totaling $100 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 Whispering $400 of merchandise containing flaws. Whispering expects the returned items to be resold at a profit. The freight on the returned merchandise was $25, paid by Whispering on June 8 . On July 16 , the company received a check for the balance due from Mount. No further returns are expected. Prepare journal entries for Whispering Company to record all the events in June and July. (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.)