AB Ltd. sells on terms of 10/7, n/60, F.O.B. shipping point. Credit terms and freight terms for its purchases vary with the supplier. Selected transactions involving merchandise held for resale during the period are listed below. All purchases are recorded at invoice price. Day 1. Sold merchandise for $20,900. Day 2. Paid freight on shipment for $150, and billed the customer for the charges. Day 4. Issued a credit memo for $5,900 worth of merchandise returned