Data for Phantom Book Warehouse Ltd. are presented in P5-2A.

June 1 Purchased 140 books on account for $18 each from Reader's World Publishers, terms n/45.

3 Sold 150 books on account to The Book Nook for $22 each, with a cost of $18, terms 2/10, n/45.

5 Received a $180 credit for 10 books returned to Reader's World Publishers.

8 Sold 80 books on account to Read-A-Lot Bookstore for $25 each, with a cost of $18, terms 2/10, n/45.

9 Issued a $300 credit memorandum to Read-A-Lot Bookstore for the return of 12 damaged books. The books were determined to be no longer saleable and were destroyed.

11 Purchased 130 books on account for $15 each from Read More Publishers, terms n/45.

12 Received payment in full from The Book Nook.

17 Received payment in full from Read-A-Lot Bookstore.

22 Sold 125 books on account to Reader's Bookstore for $25 each, with an average cost of $15, terms 2/10, n/45.

25 Granted Reader's Bookstore a $375 credit for 15 returned books. These books were restored to inventory.

29 Paid Reader's World Publishers in full.

Instructions

(a) Record the June transactions on Phantom Book Warehouse's books, assuming it uses a periodic inventory system instead of a perpetual inventory system. (Record transactions to the nearest cent.)

(b) Identify the advantages and disadvantages of Phantom Book Warehouse using a periodic inventory system instead of a perpetual inventory system.