Presented below are transactions related to Vaughn Company. 1. On December 3, Vaughn Company sold $414,000 of merchandise to Sharif Co., terms 2/10, n/30, FOB shipping point. The cost of the merchandise sold was $254,000. 2. On December 8, Sharif Co. was granted an allowance of $20,400 for merchandise purchased on December 3. 3. On December 13, Vaughn Company received the balance due from Sharif Co.