Dawg Pound experienced the following transactions during 2017:
1.
Dawg Pound purchased $20,000 of inventory with the terms 2/10, n/30 on January 3, 2018.
2.
The freight cost was $400, terms FOB destination.
3.
Sold merchandise for $25,000 that cost $7,000 with the terms 1/15, n/45. The sale was made
on January 5, 2018.
4.
The freight cost was $300, terms FOB destination.
5.
Returned $1,000 of the merchandise purchased in event 1 on January 5.
6.
Paid for the balance of the merchandise on January 12, 2018.
7.
The customer in event 3 returned merchandise that sold for $1,200 with a cost of $700 on
January 8.
8.
The customer in event 3. was granted an allowance of $600 for damaged merchandise.
9.
Collected the balance due from the customer in event 3 on January 14, 2018.