P5.2A (LO 1, 2, 3) Phantom Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Phantoms inventory consists of 250 books purchased at $18 each. Phantom uses a perpetual inventory system. Return rates in the book industry are high, with Phantom experiencing a 15% return rate historically.

During the month of June, the following merchandise transactions occurred:

June

1 Purchased 180 books on account for $16 each from Readers World Publishers, terms n/45. 3 Sold 220 books on account to The Book Nook for $25 each, with an average cost of $17, terms n/45. 5 Received a $160 credit for 10 books returned to Readers World Publishers. 8 Sold 80 books on account to Read-A-Lot Bookstore for $22 each, with an average cost of $17, terms n/45. 9 Issued a $264 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed. 11 Purchased 130 books on account for $15 each from Read More Publishers, terms n/45. 12 Received payment in full from The Book Nook. 17 Received payment in full from Read-A-Lot Bookstore. 22 Sold 125 books on account to Readers Bookstore for $25 each, with an average cost of $17, terms n/45. 25 Granted Readers Bookstore a $375 credit for 15 returned books. These books were restored to inventory. 29 Paid Readers World Publishers in full.