Kern's Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Kern's inventory consisted of books purchased for $1.800. During June, the following merchandising transactions occurred. June 3 Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was $1,440. 15 Received payment in full from Reading Rainbow. 17 Sold books on account to Rapp Books for $1,800. The cost of the books sold was $1,080. 24 24 Received payment in full from Rapp Books. 28 Sold books on account to Baeten Bookstore for $1,600. The cost of the books sold was $970. 30 30 Granted Baeten Bookstore $120 credit for books returned costing $72.