Summer Fun (SF) sells summer recreation equipment to playgrounds, parks and fun parks Summer Fun using perpetual inventory system. During May SF the following transactions occurred: April 6 Purchased $20,000 of merchandise from Equipment Plus, terms 2/10,n/60. FOB shipping point April 8 Sold $12,000 of merchandise for $25,000 to Park Fun. Terms n/30 April 12 Paid Equipment Plus full amount owed. April 14 The appropriate party paid $500 freight charges on April 6 purchase. April 17 Purchased $15,000 of merchandise from Recreational Tools. Terms 2/10,n/60. FOB destination. April 18 The appropriate party paid $650 freight charges on April 17 purchase. April 19 Sold $7,000 of merchandise for $15,000 to Summer Quest. Terms n/30 Estimated returns are 5%. FOB destination. April 20. The appropriate party paid $325 freight charges for April 19 sale April 21. Received full payment owing from Park Fun. April 22. Summer Quest returned $5,000 of merchandise. The merchandise cost SF $2,500. April 23. Received full payment owing from Summer Quest