The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 7 8 11 Flint Ltd. sold goods to Pina Colada Corp. for $71,300, terms n/15, FOB shipping point. The inventory had co $37,900. Flint's management expected a return rate of 3% based on prior experience. Shipping costs of $980 were paid by the appropriate company. Pina Colada returned unwanted merchandise to Flint. The returned merchandise has a sales price of $2,2 cost of $1,180. It was restored to inventory. Flint received the balance due from Pina Colada.