The following transactions relate to merchandise purchases and sales for the month of January 2021. On January 1st, we bought merchandise on credit from Betty Suppliers for $500,000. We paid freight charges of $30,000 on this merchandise. On January 2nd, Merchandise bought from Betty Suppliers for $5,000 was found defective while other merchandise bought for $16,000 was returned to Betty Suppliers. Solo suppliers have already told us not to pay for the defective merchandise. On January 3rd, we sold merchandise for $700,000 cash. We paid $20,000 for delivery of the merchandise to the customers. On January 4th, we sold merchandise on credit for $ 400,000. On January 5th, we received merchandise from our credit customers which had been