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Paul’s Book Warehouse distributes hardcover books to retail stores and extends credit terms of 2/10, n/30 to all of its customers. At the end of May, Paul’s inventory consisted of books purchased for $1,800. During June the following merchandising transactions occurred. June 1 Purchased books on account for $1,200 from Logan Publishers, FOB destination, terms 2/10, n/30.The appropriate party also made a cash payment of $50 for the freight on this date.
3 Sold books on account to Reading Rainbow for $2,400.
6 Received $100 credit for books returned to Logan Publishers.
9 Paid Logan Publishers in full, less discount.
15 Received payment in full from Reading Rainbow.
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