Pharoah Corporation uses the perpetual inventory system and began business on April 1. During the month Pharoah made inventory purchases of $84,600 on terms of 2/10, n/30. Pharoah returned $3,800 worth of goods during the month. Pharoah made all payments in time to take advantage of the offered cash discounts during the month. Pharoah sold inventory on account with a value of $72,600 and a markup of 30% on the cost. These were the only inventory transactions during the month. Leo uses the gross method in accounting for cash discounts. Prepare the journal entries related to: