During the month of June, the following merchandise transactions occurred:

June

1

3

5

8

9

11

12

17

22

25

29

Purchased 180 books on account for $16 each from Reader's World Publishers, terms n/45.

Sold 220 books on account to The Book Nook for $25 each, with an average cost of $17, terms n/45.

Received a $160 credit for 10 books returned to Reader's World Publishers.

Sold 80 books on account to Read-A-Lot Bookstore for $22 each, with an average cost of $17, terms n/45.

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.

Purchased 130 books on account for $15 each from Read More Publishers, terms n/45.

Received payment in full from The Book Nook.

Received payment in full from Read-A-Lot Bookstore.

Sold 125 books on account to Reader's Bookstore for $25 each, with an average cost of $17, terms n/45.

Granted Reader's Bookstore a $375 credit for 15 returned books. These books were restored to inventory.

Paid Reader's World Publishers in full.

(b)

Identify the advantages and disadvantages of Phantom Book Warehouse using a periodic inventory system instead of a perpetual