P5-37B Assume the following transactions occurred between Heights Pharmacy and Procter & Gamble (P&G), the consumer products company, during August of the current year. Aug. 8 Heights Pharmacy purchased $3,000 of merchandise from P&G on credit terms of 2/10, n/30, FOB shipping point. Separately, Heights paid a $100 bill for freight in. These goods cost P&G $900). 11 Heights returned $1,000 of the merchandise purchased on August 8. P&G accounted for the sales return and placed the goods back in inventory (P&G's cost, $400). 17 Heights paid $1,500 of the invoice amount owed to P&G for the August 8 purchase, less the discount. This payment included none of the freight charge. 26 Heights paid the remaining amount owed to P&G for the August 8 purchase. continued