On June 3, 2025, Crane Company sold to Ann Mount merchandise having a sales price of $7,800 (cost $7,020) with terms of n/60, f.o.b. shipping point. Crane estimates that merchandise with a sales value of $780 will be returned. An invoice totaling $130 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 Crane $300 of merchandise containing flaws. Crane estimates the returned items are expected to be resold at a profit. The freight on the returned merchandise was $26, paid by Crane on June 8. On July 16, the company received a check for the balance due from Mount. Prepare journal entries for Crane 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. List all debit entries before credit entries. Record journal entries in the order presented in the problem.)