The following information pertains to kingbird solar panels, inc.
july
1 sold $120,000 of solar panels to blossom company with terms 2/15, n/30. kingbird uses the gross method to record cash discounts. kingbird estimates allowances of $1,500 will be honored on this sale.
12 sold $80,000 of solar panels to ayayai corp. with terms of 3/10, n/60. kingbird expects no allowances related to this sale.
18 ayayai corp. paid kingbird for its july 12 purchase.
20 blossom calls to indicate that the panels purchased on july 1 work well, but the color is not quite right. kingbird grants a credit of $2,000 as compensation.
29 blossom company paid kingbird for its july 1 purchase.
31 kingbird expects allowances of $4,380 to be grated in the future related to solar panel sales in july.
prepare the necessary journal entries for kingbird.