Sheridan Corporation uses a periodic inventory system and the gross method of accounting for purchase discounts.

$($a$)$ On July $1,(1)$ Sheridan purchased $$69,000$ of inventory, terms $\frac{2}{10},\frac{n}{30},$ FOB shipping point. $(2)$ Sheridan paid freight costs of $$1,095.$

$($b$)$ On July $3,$ Sheridan returned damaged goods and received credit of $$6,900.$

$($c$)$ On July $10,$ Sheridan paid for the goods.

Prepare all necessary journal entries for Sheridan. $($If no entry is required, select $"$No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.$)$

No$.$ Date

$($a$)(1)$

$($a$)(2)$

$($b$)$

$($c$)$

Account Titles and Explanation

Inventory

Accounts Payable

Cash

Accounts Payable

Inventory

Accounts Payable

Debit

Credit

Freight$-$In

Accour $($a$)$

Inventory

Inventory