On October 5, Whispering Winds Corporation buys merchandise for resale on account from Ayayal Corporation. The selling price of the goods is $4,730, and the cost to Ayayai Company is $3,040. On October 8, Whispering Winds returns defective goods with a selling price of $750 and a cost of $240. It is anticipated that these goods can be resold at a discount at some point in the future for at least their cost of $240, if not more. Both companies use a periodic inventory system.