The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Pictou Ltd. sold $18,000 of merchandise toThames Corp.,terms 2/10, n 30, FOBshipping point. The cost of the merchandise sold was S10:000. Shipping costs of S450 were paid by the appropriate company. Thames returned unwanted merchandise to Pictou. The returned merchandise has a sales price of $1,200, and a cost of $650. It was restored to inventory. 11 Pictou received the balance due from Thames. Instructions Record the above transactions in the books of Pictou. Record the above transactions in the books of Thames. Calculate the gross profit earned by Pictou on the above transactions.