Pina Colada Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Pina Colada's inventory consists of 230 books purchased at $19 each. Pina Colada uses a perpetual inventory system. Return rates in the book industry are high, with Pina Colada experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred: June 1 Purchased 170 books on account for $17 each from Reader's World Publishers, terms n/45. 3 Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $18, terms n/45. 5 Received a $170 credit for 10 books returned to Reader's World Publishers. 8 9 11 Sold 82 books on account to Read-A-Lot Bookstore for $24 each, with an assumed average cost of $18, terms n/45. Issued a $288 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. 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 22 22 Received payment in full from Read-A-Lot Bookstore. Sold 125 books on account to Reader's Bookstore for $23 each, with an assumed average cost of $18, terms n/45. 25 Granted Reader's Bookstore a $345 credit for 15 returned books. These books were restored to inventory. 29 Paid Reader's World Publishers in full.