P5-2A Powell 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 mer- chandising transactions occurred June 1 Purchased books on account for $1,040 (including freight) from Catlin Publishers, terms 2/10, n/30. Sold books on account to Garfunkel Bookstore for $1,200. The cost of the 3 6 Received $40 credit for books returned to Catlin Publishers. 9 Paid Catlin Publishers in full. merchandise sold was $720 15 17 Received payment in full from Garfunkel Bookstore. Sold books on account to Bell Tower for $1,200. The cost of the merchandise sold was $730. Purchased books on account for $720 from Priceless Book Publishers, terms 1/15, n/30 20 24 Received payment in full from Bell Tower 26 Paid Priceless Book Publishers in full. 28 Sold books on account to General Bookstore for $1,300. The cost of the merchandise sold was $780. Granted General Bookstore $130 credit for books returned costing $80. 30