White Company allows customers to make purchases on credit. The terms of all credit sales are 2/10, n/30, and all sales are recorded at the gross price. Other customers can use a bank credit card where the bank deducts a 4% service charge for credit card sales and credits the bank account of White immediately when credit card receipts are deposited. White uses the perpetual inventory method.

Prepare journal entries to record the following selected transactions and events.

June 10	Accepted a $6,700, 45-day, 6% note dated this day in granting Cory Tam a time extension on his past-due account receivable.
June 20	Accepted a $6,240, 30-day, 10% note dates this day in granting F. Potter a time extension on his past-due account receivable.
July 20	F. Potter dishonored his note when presented for payment.
July 25	Received payment of principal plus interest from Cory Tam.

Please Explain