Precious Co. uses a periodic inventory system and the gross method of accounting for purchase discounts. On July 1, Precious Co. purchased 40,000 of inventory, terms 2/10, n/30, FOB shipping point. Precious Co. paid freight costs of 2,400. On July 3, Precious Co. returned damaged goods and received credit of 5,000. On July 10, Precious Co. paid for the goods. Prepare all necessary journal entries for Precious Co..