Phantom Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Phantom’s inventory consists of 175 books purchased at $18 each. Phantom uses a perpetual inventory system.
During the month of June, the following merchandise transactions occurred: 

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 Th e 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 Th e 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. Th ese books were restored to inventory.
29 Paid Reader’s World Publishers in full.

Instructions
(a) Is the Phantom Book Warehouse a retailer or a wholesaler? Explain.
(b) Record the June transactions for Phantom. (Record transactions to the nearest cent.)
(c) Create a T account for the Merchandise Inventory account. Post the opening balance and June transactions, and calculate the June 30 balance in the account.
(d) Determine the number of books Phantom has on hand on June 30. What is the average cost of these books on June 30?