#2 Phantom Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Phantom's inventory consists of 250 books purchased at $18 each. Phantom uses a perpetual inventory system. Return rates in the book industry are high, with Phantom experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June: 1: Purchased 180 books on account for $16 each from Reader's World Publishers, terms n/45. 3: Sold 220 books on account to The Book Nook for $25 each, with an average cost of $17, terms n/45. 5: Received a $160 credit for 10 books returned to Reader's World Publishers. 8: Sold 80 books on account to Read-A-Lot Bookstore for $22 each, with an average cost of $17, terms n/45. 9: Issued a $264 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. 11: Purchased 130 books on account for $15 each from Read More Publishers, terms n/45. 12: Received payment in full from The Book Nook. 17: Received payment in full from Read-A-Lot Bookstore. 22: Sold 125 books on account to Reader's Bookstore for $25 each, with an average cost of $17, terms n/45. 25: Granted Reader's Bookstore a $375 credit for 15 returned books. These books were restored to inventory. 29: Paid Reader's World Publishers in full