Practice Exercise 7-2 The following information pertains to Larkspur Solar Panels, Inc. July 1. Sold $168,000 of solar panels to Crane Company with terms 4 n/ 30. Larkspur uses the gross method to record cash discounts. Larkspur estimates allowances of $1,500 will be honored on this sale. 12 sold $89,000 of solar panels to Blue Spruce Corp. with terms of 5/10, n/60. Larkspur expects no allowances related to this sale. 18 Blue Spruce Corp. paid Larkspur for its July 12 purchase. 20 Crane calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Larkspur grants a credit of $2,600 as compensation. 29 Crane Company paid Larkspur for its July 1 purchase. 31 Larkspur expects allowances of $8,220 to be grated in the future related to solar panel sales in July. Prepare the necessary journal entries for Larkspur. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter o for the amounts.) Date Account Titles and Explanation Credit Debit July 18