Grouper Corp. uses a periodic inventory system. The company had the following inventory transactions in April:

April

3

6

7

8

Purchased merchandise from Monty Ltd. for $29,000, terms n/30, FOB shipping point.

The appropriate company paid freight costs of $720 on the merchandise purchased on April 3.

Purchased supplies on account for $5,250.

Returned damaged merchandise to Monty received a credit of $3,500. The merchandise was returned to inventory for future resale.

30

Paid the amount due to Monty in full.

1.

2.

3.

The cost of the merchandise sold on April 3 was $18,320. Monty expected a return rate of 15%.

The cost of the merchandise returned on April 8 was $2,300.

Monty uses a periodic inventory system.

Record the above transactions in Grouper's books and in the books of Monty. Both companies use the periodic inventory system.