The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 8 Pronghorn Ltd. sold goods to Culver Corp. for $60,900, terms n/15, FOB shipping point. The inventory had cost Pronghorn $32,300. Pronghorn's management expected a return rate of 3% based on prior experience. Shipping costs of $820 were paid by the appropriate company. Culver returned unwanted merchandise to Pronghorn. The returned merchandise has a sales price of $1,880, and a cost of $1,020. It was restored to inventory. 11 Pronghorn received the balance due from Culver.