Question

On June 10, Oriole Company purchased $7,500 of merchandise from Ivanhoe Company, terms 2/10, 1/30. Oriole Company pays the freight costs of $360 on June 11. Goods totaling $300 are returned to Ivanhoe Company for credit on June 12. On June 19, Oriole Company pays Ivanhoe Company in full, less the purchase discount. Both companies use a perpetual inventory system.

Prepare separate entries for each transaction on the books of Oriole Company. (If no entry is required, select "No Entry for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not Indent manually. Record journal entries in the order presented in the problem.) 

Prepare separate entries for each transaction for Ivanhoe Company. The merchandise purchased by Ivanhoe Company on June 10 cost McGiver $2,960, and the goods returned cost Ivanhoe Company $200. (If no entry is required, select "No entry for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Answer 1