Wildhorse Wholesalers uses a perpetual inventory system. Mar. 1 Stellar Stores purchases $8,500 of merchandise for resale from Wildhorse Wholesalers, terms 2/10, n/30, FOB shipping point. 2 The correct company pays $140 for the shipping charges. 3 21 22 22 22 23 23 30 31 Stellar returns $1,200 of the merchandise purchased on March 1 because it was the wrong colour. Wildhorse gives Stellar a $1,200 credit on its account. Stellar Stores purchases an additional $14,000 of merchandise for resale from Wildhorse Wholesalers, terms 2/10, n/30, FOB destination. The correct company pays $170 for freight charges. Stellar returns $600 of the merchandise purchased on March 21 because it was damaged. Wildhorse gives Stellar a $600 credit on its account. Stellar paid Wildhorse the amount owing for the merchandise purchased on March 1. Stellar paid Wildhorse the amount owing for the merchandise purchased on March 21. Additional information: Mar. 22 21 23 23 Wildhorse's cost of the merchandise sold to Stellar was $4,000. Wildhorse's cost of the merchandise returned by Stellar was $565. As the merchandise was not damaged, it was returned to Wildhorse's inventory. Wildhorse's cost of the additional merchandise sold to Stellar Stores was $6,588. Wildhorse's cost of the merchandise returned by Stellar was $282. As the merchandise was damaged, it was put in the recycling bin. 57