Blue Spruce Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Blue Spruce's inventory consists of 250 books purchased at $20 each. Blue Spruce uses a perpetual inventory system. Return rates in the book industry are high, with Blue Spruce experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 Purchased 170 books on account for $18 each from Reader's World Publishers, terms n/45. 3 Sold 230 books on account to The Book Nook for $25 each, with an assumed average cost of $19, terms n/45. 5 Received a $162 credit for 9 books returned to Reader's World Publishers. 8 9 Sold 86 books on account to Read-A-Lot Bookstore for $23 each, with an assumed average cost of $19, terms n/45. Issued a $276 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 $16 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 $26 each, with an assumed average cost of $19, terms n/45. 25 Granted Reader's Bookstore a $390 credit for 15 returned books. These books were restored to inventory. 22 29 Paid Reader's World Publishers in full.