Burr Company had the following account balances at December…

Burr Company had the following account balances at December 31, Year 1: Cash in banks   $2,250,000 Cash on hand 125,000 Cash legally restricted for additions to plant (expected to be disbursed in Year 2) 1,600,000 Cash in banks includes $600,000 of compensating balances related to short-term borrowing arrangements. The compensating balances are not legally restricted as to withdrawal by Burr. In the current assets section of Burr’s December 31, Year 1, balance sheet, total cash should be reported at

Ignacio Company sold goods on account for to Gabrielle Inc….

Ignacio Company sold goods on account for to Gabrielle Inc. on February 2, 20X1 with credit terms of 2/10, net 30. The goods had a selling price of $1,000 a cost to Ignacio or $600. Ignacio uses the gross method to record sales on account. Gabrielle returned $250 of goods and paid the account in full on February 7. What journal entry will Ignacio make to record the collection of the account?