Ms. Schmidt didn't request an extension of time to file a 2022 income tax return and didn't mail the completed return to the IRS until August 8, 2023. Ms. Schmidt enclosed a check for $2,610, the correct balance of tax due with the return. Required:

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The following information pertains to Sage Hill Solar Panels, Inc. Sold $144,000 of solar panels to Oriole Company with terms 2/15, n/30. Sage Hill uses the gross method to record cash discounts. Sage Hill estimates allowances of $1,500 will be honored on this sale. July 1 Sold $88,000 of solar panels to Cheyenne Corp. with terms of 3/10, n/60. Sage Hill expects no allowances related to 12 this sale. 18 Cheyenne Corp. paid Sage Hill for its July 12 purchase. Oriole calls to indicate that the panels purchased on July 1 work well, but the color is not quite right. Sage Hill grants a credit of $2,000 as compensation. 20 29 Oriole Company paid Sage Hill for its July 1 purchase. 31 Sage Hill expects allowances of $4,380 to be grated in the future related to solar panel sales in July. Prepare the necessary journal entries for Sage Hill. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the…