P5.3A (LO 2, 3, 4, 5) Presented here are selected transactions for Norlan Inc. during September of the current year. Norlan uses a perpetual inventory system. Norlan estimates a return rate of 5% based on past experience.

Sept.

2 Purchased equipment on account for $65,000, terms n/30, FOB destination. 3 Freight charges of $950 were paid by the appropriate party on the September 2 purchase of equipment. 4 Purchased supplies for $4,000 cash. 6 Purchased inventory on account from Hillary Corp. at a cost of $65,000, terms 1/15, n/30, FOB shipping point. 7 Freight charges of $1,600 were paid by the appropriate party on the September 6 inventory purchase. 8 Returned damaged goods costing $5,000 that were originally purchased from Hillary on September 6. Received a credit on account. 9 Sold goods costing $15,000 to Fischer Limited for $20,000 on account, terms n/30, FOB destination. 10 Freight charges of $375 were paid by the appropriate party on the September 9 sale of inventory. 17 Received the balance due from Fischer. 20 Paid Hillary the balance due. 21 Purchased inventory for $6,000 cash. 22 Sold inventory costing $20,000 to Kun-Tai Inc. for $27,000 on account, terms n/30, FOB shipping point. 23 Freight charges of $500 were paid by the appropriate party on the September 22 sale of inventory. 28 Kun-Tai returned goods sold for $1,000 that cost $750. The merchandise was restored to inventory.