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Presented here are selected transactions for Oriole Inc. during August of the current year. Oriole uses a perpetual inventory system. It estimates a return rate

Presented here are selected transactions for Oriole Inc. during August of the current year. Oriole uses a perpetual inventory system. It
estimates a return rate of 12%, based on past experience.
Aug. 1 Purchased supplies for $4,000 cash.
3 Purchased inventory on account from Kenliwa Corp. at a cost of $37,000, terms 220,n45, FOB shipping point.
4 Freight charges of $1,400 were paid by the appropriate party on the August 3 inventory purchase.
6 Sold goods costing $11,000 to Penkwa Limited for $27,500 on account, terms n/30, FOB destination.
7 Freight charges of $600 were paid by the appropriate party on the August 6 sale of inventory.
9 Returned damaged goods costing $2,500 that were originally purchased from Kenliwa on September 3. Received a
credit on account.
10 Purchased equipment on account for $48,500, terms n/45, FOB destination.
11 Freight charges of $700 were paid by the appropriate party on the August 10 purchase of equipment.
13 Purchased inventory for $3,900 cash.
15 Received the balance due from Penkwa.
22 Paid Kenliwa the balance due.
26 Sold inventory costing $13,000 to Makoons Inc. for $26,000 on account, terms n/45, FOB shipping point.
27 Freight charges of $750 were paid by the appropriate party on the August 26 sale of inventory.
30 Makoons returned goods sold for $1,100 that cost $550. The merchandise was restored to inventory.
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