Phantom Book Warehouse distributes hardcover books to retail stores and extends credit terms of n$/30$ to all of its customers. Phantom uses a perpetual inventory system and the earnings approach. At the end of May, Phantom had an inventory of $230$ books purchased at $$7$ each. During the month of June, the following merchandise transactions occurred: June $1$Purchased $170$ books on account for $$7$ each Reader$$s World Publishers, terms n$/30,$ FOB destination$\mathrm{.}2$The correct company paid $$85$ freight on the June $1$ purchase$\mathrm{.}3$Sold $190$ books on account to Book Nook for $$12$ each$\mathrm{.}6$Received $$70$ credit for $10$ books returned to Reader$$s World Publishers$\mathrm{.}18$Issued a $$48$ credit to Book Nook for the return of four damaged books. The books were determined to be no longer saleable and were destroyed$\mathrm{.}20$Purchased $140$ books on account for $$6\mathrm{.}50$ each from Reader$$s World Publishers, terms n$/30,$ FOB shipping point$\mathrm{.}21$The correct company paid $$70$ freight for the July $20$ purchase$\mathrm{.}27$Sold $100$ books on account to Readers Bookstore for $$12$ each$\mathrm{.}28$Granted Readers Bookstore a $$180$ credit for $15$ returned books. These books were restored to inventory$\mathrm{.}30$Paid Reader$$s World Publishers for the June $1$ purchase$\mathrm{.}30$Received the balance owing from Book Nook. Instructions Record the transactions for the month of June for Phantom Book Warehouse. Create a T account for Merchandise Inventory. Post the opening balance and June$$s transactions and calculate the June $30$ balance. Determine the number of books on hand at the end of the month and calculate the average cost per book of the inventory on hand at June$30.$ Explain how freight terms can affect the selling price, and the cost, of merchandise. Use the transactions on June $1$ and $20$ between Phantom Book Warehouse and Reader$$s World Publishers as part of your explanation.