Sunland Company commenced operations on July 1. Sunland Company uses a periodic inventory system. During July, Sunland Company was involved in the following transactions and events: July 2 Purchased $14,500 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point. 3 Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers. 4 Paid $530 of freight costs on July 2 shipment. 8 Sold merchandise for $2,700 cash. 11 Paid Suppliers Inc. the full amount owing. 15 Sold merchandise for $6,000 on account, 1/10, n/30, FOB shipping point. 25 Received full payment for the merchandise sold on July 15. 31 Sunland did a physical count and determined there was $9,600 of inventory on hand.