The following events pertain to The Craft Shop, which began operations in October 2012. The company uses the perpetual inventory method.

1)Oct.1 Issued common stock to investors for $15,000

2)Oct.2 Purchased $12,000 of inventory on account with terms 2/10, n/30

3)Oct 3. Sold on account for $18,000 merchandise that had cost $10,000; terms 1/10, n/30

4)Oct.4 Returned defective merchandise with list price of $1,000 from Oct. 2 purchase

5)Oct.5 Paid freight of $100 on goods sold to customers FOB destination

6)Oct.6 Paid the amount due on the merchandise purchased Oct. 2

7)Oct 7 Received cash from customer in settlement of Oct. 3 sale