Problem
Two different companies, Ag Bio and Athletic Performance, entered into the following inventory transactions during December. Both companies use a perpetual inventory system.
1. December 6 - Ag Bio sold inventory on account to Athletic Performance for $130,000, terms 2/10, n/30. This inventory originally cost Ag Bio $78,000.
2. December 8 - Athletic Performance returned inventory to Ag Bio for a credit of $10,000. Ag Bio returned this inventory to inventory at its original cost of $6,000.
3. December 21 - Athletic Performance paid Ag Bio for the amount owed.
Task
Prepare the journal entries to record these transactions on the books of Ag Bio.