View Policies Current Attempt in Progress Sheffield Book Warehouse Ltd. distributes hardcover books to retail stores. At the end of May, Sheffield's inventory consists of 230 books purchased at $17 each. Sheffield uses a perpetual inventory system. Return rates in the book industry are high, with Sheffield experiencing a 15% return rate historically. During the month of June, the following merchandise transactions occurred June 1 Purchased 160 books on account for $15 each from Reader's World Publishers, terms n/45 3 5 Sold 220 books on account to The Book Nook for $25 each, with an assumed average cost of $16, terms /45 Received a $150 credit for 10 books returned to Reader's World Publishers 8 9 Sold 81 books on account to Read-A-Lot Bookstore for $25 each, with an assumed average cost of $16, terms n/45. 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. Purchased 130 books on account for $16 each from Read More Publishers, terms n/45. 11 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 $23 each, with an assumed average cost of $16, terms n/45 25 Granted Reader's Bookstore a $322 credit for 14 returned books. These books were restored to inventory. 29 Paid Reader's World Publishers in full.