On june 10, cullumber company purchased $6,300 of merchandise on account from whispering winds company, fob shipping point, terms 1/10, n/30. cullumber company pays the freight costs of $410 on june 11. damaged goods totaling $300 are returned to whispering winds for credit on june 12. the fair value of these goods is $70. on june 19, cullumber company pays whispering winds company in full, less the purchase discount. both companies use a perpetual inventory system. prepare journal entries for both company separately.

The Journal entries are as follows:

(a) On June 10,

Account Receivables A/c   Dr. $6,300

To sales                                                       $6,300

(To record sale of merchandise)

(b) On June 12,

(i) Sales Return & allowance A/c    Dr. $300

To Account Receivables                                $300

(Being Merchandise return by customer)

(ii) Merchandise Inventory A/c       Dr.  $70

To Cost of goods sold                                    $70

(To record cost of merchandise returned)

(c) On June 19,

Cash A/c                    Dr. 5,940

Sales discount A/c    Dr. 60

To Account Receivable                 $6,000

(Being Amount actually received on Credit sale after allowing discount)  

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds