Sold merchandise for cash, $266,000. Sold merchandise to R. Smith; invoice price, $10,000. Sold merchandise to K. Miller; invoice price, $35,000. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit. Sold merchandise to B. Sears; invoice price, $27,000. R. Smith paid his account in full within the discount period. Collected $89,000 cash from customer sales on credit in prior year, all within the discount periods. Miller paid the invoice in (c) within the discount period. Sold merchandise to R. Roy; invoice price, $21,500. Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund. After the discount period, collected $7,000 cash on an account receivable on sales in a prior year. Wrote off a prior year account of $2,000 after deciding that the amount would never be collected. The estimated bad debt rat