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On June 3, Carla Vista Co. sold to Chester Arthur merchandise having a sale price of $3,300 with terms 2/10, n/60, f.o.b. shipping point. A

On June 3, Carla Vista Co. sold to Chester Arthur merchandise having a sale price of $3,300 with terms 2/10, n/60, f.o.b. shipping point. A $81 invoice, terms n/30, was received by Chester on June 8 from John Booth Transport Service for the freight cost. When it received the goods on June 5, Chester notified Carla Vista that $510 of the merchandise contained flaws that rendered it worthless; the same day, Carla Vista Co. issued a credit memo covering the worthless merchandise and asked that it be returned to them at their expense. The freight on the returned merchandise was $28, which Carla Vista paid on June 7. On June 12, the company received a cheque for the balance due from Chester Arthur.

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