**E6-2 Reporting Net Sales with Credit Sales, Sales Discounts, and Credit Card Sales****LO6-1**The following transactions were selected from the records of OceanView Company:- **July 12**: Sold merchandise to Customer R, who charged the $3,000 purchase on his Visa credit card. Visa charges OceanView a 2 percent credit card fee. - **July 15**: Sold merchandise to Customer S at an invoice price of $9,000; terms 3/10, n/30.- **July 20**: Sold merchandise to Customer T at an invoice price of $4,000; terms 3/10, n/30.- **July 23**: Collected payment from Customer S from July 15 sale.- **Aug. 25**: Collected payment from Customer T from July 20 sale.**Required:**Assuming that Sales Discounts and Credit Card Discounts are treated as contra-revenues, compute net sales for the two months ended August 31. **E6-9 Recording Bad Debt Expense Estimates and Write-Offs Using the Percentage of Credit Sales Method****LO6-2**During the current year, Witz Electric, Inc., recorded credit sales of $1,300,000. Based on prior experience, it estimates a 1 percent bad debt rate on credit sales.**Required:**Prepare journal entries for each transaction:a. On September 29 of the current year, an account receivable for $4,000 from March of the current year was determined to be uncollectible and was written off.b. The appropriate bad debt expense adjustment was recorded for the current year.

“Since you have asked multiple question, we will solve the first question for you. If you want any specific question to be solved then please specify the question number or post only that question.” Net sale is the amount of sales revenues that an entity determines after deducting the sale discount, allowances and returns from it. It is shown in the income statement. Credit Card Fee=Sale×Percentage of credit card fee=$3,000×2%=$60 Discount on July 15 sale=Sale×Percentage Discount=$9,000×3%=$270 Net sale=Total sale-Discount-Credit card fee=$3,000+$9,000+$4,000-$60-$270=$15,670 Thus, net sale = $15,670 Note: Since, July 20 sale is not collected within discount period so discount is not considered on the same.