The following merchandise transactions occurred in December. Both companies use a perpetual inventory system. Dec. 3 Ayayai Ltd. sold goods to Whispering Winds Corp. for $79,100, terms n/15, FOB shipping point. The inventory had cost Ayayai $42.100. Ayayai's management expected a return rate of 3% based on prior experience. 7 Shipping costs of $1,100 were paid by the appropriate company. 8 Whispering Winds returned unwanted merchandise to Ayayai. The returned merchandise has a sales price of $2,440, and a cost of $1,300. It was restored to inventory. 11 Ayayai received the balance due from Whispering Winds.