On September 1, the beginning of its fiscal year, Carla Vista Ltd. had an inventory of 118 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 10 11 14 29 30 Purchased 885 calculators for $20 each from Digital Corp. on account, terms n/30. Returned 27 calculators to Digital for $540 credit because they did not meet specifications. Sold 400 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. Granted credit of $810 to Campus Book Store for the return of 27 calculators that were not ordered. The calculators were restored to inventory. Paid Digital the amount owing. Received payment in full from the Campus Book Store.

On September 1, the beginning of its fiscal year, Carla Vista Ltd, had an inventory of 118 calculators at a cost of $20 each. The company uses a perpetual inventory system. During September, the following transactions occurred: Sept. 2 Purchased 885 calculators for $20 each from Digital Corp. on account, terms n/30. 10 Returned 27 calculators to Digital for $540 credit because they did not meet specifcations. 11 Sold 400 calculators for $30 each to Campus Book Store, terms n/30. Management estimates returns of 4% based on prior experience. 14 Granted eredit of $810 to Campus Book Store for the return of 27 calculators that were not ordered. The calculators were restored to inventory. 29 Paid Digital the amount owing. 30 Received payment in full from the Campus Book Store