Pina Colada Home Electronics Corp. completed the following merchandising transactions in the month of July 2024. At the beginning of July, Pina Colada's ledger showed Cash $24,000; Accounts Receivable $10,800; Inventory $13,200; Common Shares $21,600; and Retained Earnings $26,400. Pina Colada Home has experienced a return rate of 2% of sales and uses a perpetual inventory system. July 2 Sold merchandise on account to Home Security Ltd. for $10,800, terms n/45, FOB destination. The cost of the merchandise was $7,200. 2 Freight charges of $240 were paid by the appropriate party on the merchandise sold. 4 Purchased merchandise on account from Al Gadgets Inc. for \$16,800, terms 2/10. n/30, FOB shipping point. 5 Freight charges of $600 were paid by the appropriate party on the merchandise purchased on July 4. 8 Collected $3,600 of the accounts receivable outstanding at the beginning of the month. All accounts were originally sold on terms of n/30. 9 Paid a $220 cash refund to customers for returned merchandise. The cost of the returned merchandise was $70. It was restored to inventory. 11 Received a $960 credit from Al Gadgets when merchandise was returned. 13 Sold merchandise to various customers for $8,400 cash. The cost of the merchandise was $2,400. 16 Purchased merchandise from Virtual Trainers Inc. for $14,400, terms n/30, FOB destination. 17 Freight of $240 was paid by the appropriate party on the July 16 purchase of merchandise. 18 Paid Al Gadgets in full. 27 Received payment in full from Home Security Ltd. for merchandise sold on account on July 2. 30 Purchased supplies for $1,680 cash. 31 A physical inventory count was taken and determined that there was $33,600 of inventory on hand. Prepare any adjustment required. (a)