John's specialty store uses a perpetua; inventory system. The following are some inventory transactions for month of May 2009:
1. John's purchased merchandise on account for $5,000. Freight charges of $300 were paid in cash.
2. John's returned some of the merchandise in (1.). The cost of the merchandise was $600 and John's account was credited by the supplier. 3. Merchandise costing $2,800 was sold for 5,200 in cash.