June 2Romeo received an $18,000 invoice from one of its suppliers. Terms

were 2/10 n/30, FOB shipping point.

3Romeo paid the freight bill amounting to $2,000.

4Romeo returned $2,500 of the merchandise billed on June 2 because it

was defective.

5Romeo sold $8,000 of merchandise on account, terms 3/15 n/30.

The cost of the merchandise sold was $5,100.

10Romeo paid the invoice dated June 2, less the return and the discount.

15A customer returned $2,500 of merchandise sold on June 5. The cost of

the returned merchandise was $1,450.

19Britt received payment on the remaining amount due from the sale of

June 5, less the return and the discount.

Requirement 1: Assume Romeo Merchandising uses a perpetual inventory system. (12 Marks)

Requirement 2: Assume Romeo Merchandising uses a periodic inventory system. (12 marks)