The following transactions were recorded by an inexperienced bookkeeper during the months of June and July for Sunland Company. Sunland Company uses a perpetual inventory system. June 10 11 12 12 20 July 15 15 17 A purchase of $4,000 of merchandise from DanDan Distributors was debited to Purchases and credited to Cash. The terms of the purchase were 2/10, n/30, FOB shipping point. The invoice for freight in the amount of $175 for the delivery of merchandise purchased from DanDan was paid and was debited to Delivery Expense. Damaged goods totalling $300 were returned to DanDan Distributors for credit. The bookkeeper recorded a debit to Accounts Receivable and a credit to Sales Returns and Allowances. A payment was made to DanDan Distributors for $4,000. The payment was a debit to Purchases and a credit to Cash. Sunland sold goods for $9.145; Sales was credited and Cost of Goods Sold was debited for this amount. The cost of the inventory sold was $3,700. The terms of the sale were 1/15, n/30, FOB destination. Freight charges on the above transaction were debited to Accounts Receivable and credited to Cash for $175. The bookkeeper believed the customer had to pay for the freight charges. Sunland's manager gave the customer from July 15 a $220 allowance. The entry made to record the allowance was a debit to Sales and a credit to Sales Returns and Allowances.