P5.1 (LO 2,3), AP Kern's Book Warehouse distributes hardback books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. During the month of June, the following merchandising trans- actions occurred. June 1 Purchased books on account for $1,600 from Binsfeld Publishers, terms 2/10, n/30. 3 Sold books on account to Reading Rainbow for $2,500. The cost of the books sold was 6959 20 24 2222 26 28 30 $1,440. Received $100 credit for books returned to Binsfeld Publishers. Paid Binsfeld Publishers in full. Received payment in full from Reading Rainbow. Sold books on account to Rapp Books for $1,800. The cost of the merchandise sold was $1,080. Purchased books on account for $1,800 from McGinn Publishers, terms 2/15, n/30. Received payment in full from Rapp Books. Paid McGinn Publishers in full. Sold books on account to Baeten Bookstore for $1,600. The cost of the merchandise sold was $970. Granted Baeten Bookstore $120 credit for books returned costing $72.