On June 10, Pharoah Company purchased $9,500 of merchandise on account from Sheffield Company, FOB shipping point, terms 1/10, n/30. Pharoah pays the freight costs of $510 on June 11. Damaged goods totaling $500 are returned to Sheffield for credit on June 12. The fair value of these goods is $80. On June 19, Pharoah pays Sheffield Company in full, less the purchase discount. Both companies use a perpetual inventory system.