Journalize the following transactions for the seller, Smith Company, using the gross method to account for sales discounts. Assume a perpetual inventory system.
August 6 Sold goods costing $9,000 to Reed Company on account, $15,000, terms 2/10, n/30. The goods are sold FOB shipping point, freight prepaid by seller, $260. August 12 Reed Company returned damaged merchandise previously purchased on account, $3,300. August 16 Received the amount due from Reed Company.