View Policies Current Attempt in Progress Sheridan Company commenced operations on July 1. Sheridan Company uses a periodic inventory system. During July, Sheridan Company was involved in the following transactions and events: July 2 Purchased $14,900 of merchandise from Suppliers Inc. on account, terms 2/10, n/30, FOB shipping point. 3 Returned $1,200 of merchandise to Suppliers Inc. as it was damaged. Received a credit on account from Suppliers. 4 Paid $520 of freight costs on July 2 shipment. 8 Sold merchandise for $2,400 cash. 11 Paid Suppliers Inc. the full amount owing. 15 Sold merchandise for $6,500 on account, 1/10, n/30, FOB shipping point. 25 Received full payment for the merchandise sold on July 15. 31 Sheridan did a physical count and determined there was $9,500 of inventory on hand.